MichelleE Posted November 5, 2018 Report Share Posted November 5, 2018 If converting from a corporation to a LLC is a novation needed? Many states allow a certificate of conversion to be filed and thus a streamlined process. I don't think a novation would be needed in this instance but maybe a change of name. However, if converting from an Inc. to an LLC and a new LLC has to be formed I think you would need to file a novation agreement. Any thoughts on this? I saw another topic about transferring from an LLC to an Inc. which would more clearly require a novation but I think it's different when going from an Inc. to an LLC because the Inc. doesn't always dissolve depending on how the conversion takes place. Link to comment Share on other sites More sharing options...
ji20874 Posted November 5, 2018 Report Share Posted November 5, 2018 Have you read FAR Subpart 42.12? Please do. The question is whether or not the LLC is a successor in interest. If you think of the LLC as a successor in interest, then you follow FAR 42.1203 and 42.1204. If you think of the LLC as merely a change in name (and not a successor in interest), then you follow FAR 42.1203 and 42.1205. I lean towards the former. Link to comment Share on other sites More sharing options...
Neil Roberts Posted November 6, 2018 Report Share Posted November 6, 2018 I assume you are posting about the relationship between the Government and a contractor? If not, FAR is not controlling. Link to comment Share on other sites More sharing options...
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