What to do when a member leaves a new LLC?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
What to do when a member leaves a new LLC?
I just formed an LLC in Kentucky. The company has done no business yet and won’t
for at least a few months. The expenses spent on the company are solely the cost
of forming the LLC. One of the 3 members whose name is on the paper work filed
with the state has moved out of town and wishes to leave the company since they
will no longer be able to help out and doesn’t need any compensation/buyout we
haven’t made any money yet How do I go about this?
Asked on October 17, 2017 under Business Law, Kentucky
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 6 years ago | Contributor
Amend your operating agreement, with an amendment signed by all members (including the departing one) that he is giving his interest to the other 2, in whatever percentages to each you all agree to (e.g. half his share to each remaining member) and is being released from all liability or obligations. Or if you don't have a written operating agreement (though you should), draft a short agreement that he is giving his interest to the other two members in exchange for them releasing him from any/all obligations in regards to the LLC. Then amend the information with the state, which you should be able to do online.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.