Selling your SMLLC affects your taxes as follows:   Capital Gains: If your SMLLC is sold for more than its basis (initial investment plus any improvements minus depreciation), the difference is typically treated as a capital gain, taxed at the individual level.   Tax Reporting: The sale is reported on your individual tax return, often on Schedule D and Form 8949 for capital gains and losses.   Potential Recapture of Depreciation: If assets of your SMLLC have been depreciated, there might be recapture of depreciation, taxed as ordinary income.   State Taxes: State tax implications may also apply, depending on the state laws where your SMLLC operates