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In the last couple of month, i've built a cloud based application and it's now ready to launch. I also applied for LLC in California in last month, but waiting for the application to complete.

My question is this: once I have my LLC approval, is there anything that I will need to do to move the product (code, domain name, etc..) officially under the LLC ownership. I have already built the terms of conditions on the application indicating that the terms are between users and the LLC. Is there anything else that I will need to do?

thanks!

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What you can do is write up an ownership transfer agreement between you (the owner of the code) and the LLC. That way, the LLC then owns the Intellectual Property.

Take a look at Nolo Press (nolo.com) for boiler plate contracts for this sort of thing.

I know it may seem overkill (since you probably own 100% of the LLC) but it makes sense to fully transfer ownership rights to the LLC to be protected from liability and if you get other investors.

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Are there any tax implications? Presumably the code has value even if no money is changing hands. – Kekito Apr 25 '12 at 1:47
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You set the value and since it's a "founders" type of arrangement, there is no taxable event. I forget the exact IRS code but I had to deal with this once when getting founders stock for my contributed IP. – Jarie Bolander Apr 25 '12 at 12:58

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