QUESTION
We are disolving an LLC and having an asset sale. How are the funds distributed
Asked on Aug 31st, 2015 on Business Law - Pennsylvania
More details to this question:
I am a 10% share holder. We voted as a board 9:00 am Friday, 8/28, to do this. I have not see the distribution of funds. Are they required to distribute any left over funds based on share ownership?
1 ANSWER
The LLC operating agreement may set forth the manner in which the funds must be distributed, and it may not be pro rata according to membership interest (what you refer to as share ownership.) If there is no agreement on point, however, the funds would be distributed in that manner, after all llc creditors are paid.
Answered on Aug 31st, 2015 at 9:12 AM