Buying out a partner from an LLC
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Buying out a partner from an LLC
I have a 50/50 LLC with my business partner. My business partner no longer
wants to continue in the business. Is there a way to keep the LLC that we set up,
but just remove her from being a 50 Member and make me a 100 member?
Basically just swap the LLC from a partnership to a sole proprietorship? Or do
we have to completely dissolve the LLC and start from scratch for my business
purposes? We are located in Mississippi if that makes a difference.
Asked on May 15, 2018 under Business Law, Mississippi
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 5 years ago | Contributor
An LLC can have a single member (owner). She can simply sell you her interest in the LLC, then you will be the only owner and she will be out of it--that's the easiest way to handle the situation, and lets you keep the current LLC (and the advantages, like liability protection, afforded by an LLC). The purchase of her interest in the business can be done by a fairly simple contract, that in exchange for $X, she sells you all her interest in the LLC. You just have to work out a payment plan and payment terms you both will agree to.
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