As a partner in a LLC, should I sign an agreement to give up my rights to the company before we have completed paying out client contracts?

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As a partner in a LLC, should I sign an agreement to give up my rights to the company before we have completed paying out client contracts?

My partner and I are ending our relationship and she has been managing the closure. I agreed that I would allow her to buy me out once all business has been completed.We are in the middle of paying out contracts to complete our business. Our business attorney has asked me to sign the agreement giving her legal authority over all the business now but I will be held responsible for any past debt. Should I be signing an agreement giving up my rights prior to us paying out all contracts? Should I be held responsible for the actions of the managing partner if I had no vote in the activity of bus.

Asked on January 23, 2012 under Business Law, Georgia

Answers:

Shawn Jackson / The Jackson Law Firm, P.C.

Answered 9 years ago | Contributor

Well, for a variety of reasons, you would want the "out of the LLC membership" not to be finalized until all monies are received. As you might imagine, this is a complicated process and you should have an attorney review the agreement...or draft a new one that better fits the desired results of the parties.

By Grace...

Shawn Jackson ESQ. (707) 584-4529 

Business Development Attorney EMAIL: [email protected]

www.CaliforniaBusinessDevelopmentAttorneys.com

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