How to Convert a Partnership to a LLC

• 1). Form an LLC
  
  Business owners operating under a sole proprietorship or general partnership may form a new LLC entity at any time or join an existing one by establishing a limited liability company and start operating the business under the newly formed LLC (see the first link in the Resources section).
  
  
• 2). Transfer All Business Assets
  
  Transfer all assets that are under the current business entity to the newly formed limited liability company with a bill of sale. Include any tools, equipment, software, hardware and all items used in the previous business to the LLC promptly.
  
  
• 3). Terminate the Prior Company Entity
  
  After the LLC is formed and all assets have been transferred, terminate the old general partnership or sole proprietorship. In some counties, it is possible to execute a termination of the former entity in the clerk's office.