What happens to a 2 member LLC if 1 member resigns ?
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What happens to a 2 member LLC if 1 member resigns ?
We have a 2 member LLC in Masachusetts. What happens to the Entity if 1 member resigns ? Do we need to refile the LLC and how does this affect the Tax status ?
Asked on June 18, 2018 under Business Law, Massachusetts
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 5 years ago | Contributor
The LLC continues: it has an existence independent of its members. You do not need to refile it. The tax status is also unchanged: i.e. you had (as most small LLCs do) selected what is variously known as "partnership" or "disregarded" or "pass through" tax status, it remains the same.
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