QUESTION
What are my options for my current situation in my LLC?
Asked on Oct 07th, 2011 on Business Law - Louisiana
More details to this question:
Hello. My wife and I joined an LLC with my cousin and opened a video game store in Swartz, La in June 2011. My wife and I are 50% owners and my cousin is the other 50%. My wife and I provided the start up capital of $22,000. We agreed that $11,000 of that would be fronted for my cousin on our behalf. We printed a contract from legal zoom that states form of repayment to us for the $11,000. He refuses to sign it. He hasn''t put a dime into the business since. Neither of us have drawn a profit on the business and agreed not too until after christmas this year. My wife and I want to either assume 100% the business or offer my cousin our buyout of the company which my wife and I agreed for $22,000.
1 ANSWER
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A LLC owner has the right to either buy-out the other owner's percentage of the company, or to try and sell his/her interest in the company to the highest bidder. If the operating agreement has language stating that a member has a first-right-of-refusal to purchase another member's shares, the non-selling member may make an offer for the shares of the company up for sale, and may match any offer made by another person or company. A LLC may also dissolve if the members vote to dissolve. This would entitle each member a share of any profits, by ownership percentage, after all creditors are paid.
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Answered on Nov 15th, 2011 at 4:03 PM