Getting my money back from LLC
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Getting my money back from LLC
I became a member of LLC and my name is stated as the Registered agent in the LLC document. Myself and my co-member paid 30k and 70K respectively to buy a restaurant thru this LLC last year. Within short period of time I decided not to be part of the business and asked for the money from the other guy. He gave me 15k back so far and not paying the rest. I want to get out of the LLC as well as get my money back. I want to know what actions I can take?
Asked on August 18, 2017 under Business Law, North Carolina
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 6 years ago | Contributor
You don't have any right to the money back unless there was a written agreement (e.g. the operating agreement) stating that you could withdraw from the LLC and be repaid. Otherwise, once you invest in an LLC (or buy shares in a corporation, if it had been structrured that way), you are an owner of it, and just like an owner of a car or house can't require the seller to take it back, or force a co-owner to buy him out unless there was an agreement to so, you are stuck with your ownership interest and you cannot get your money back. You are stuck with the LLC as much as a co-owner of house he or she bought with a significant other is stuck with the house even if the relationship sours.
If you do have a written buy-out agreement (or buy-out clause in an operating agreement), you can enforce it in court via a lawsuit if necessary; but without a buy-out agreement, you can only get out of the LLC if someone buys your share of it (or accepts it as a gift, if you are so desparate to get out that you'd give it away), and you can only get as much money for your share as someone, like your fellow member (co-owner) will agree to pay you.
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