How can I collect on a membership in an LLC?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
How can I collect on a membership in an LLC?
I invested 150k in an LLC 6 years ago giving me a 10% membership. The LLC bought a 20 year old profitable manufacturing company. I went to work there as a manager. After 6 declining years the company was sold by the lenders in an asset sale and my 10% was wiped out. The new owners kept me on for a short while and I was discharged. As part of my hard copy separation agreement I was given a 2% membership in the new LLC that purchased the company. The company is in one state and I am located in another. How can I collect on my 2%. How would valuation be determined?
Asked on July 30, 2012 under Business Law, Massachusetts
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
In order to ascertain how your 2% ownership interest is to be bought out in the limited liability company that you have an ownership interest in, you need to get a copy of the operating agreement of the entity and review it carefully. Most likely the operating agreement will set forth how you get your 2% interest in the entity cashed out.
Valuation is typically established by an independent third party appraiser.
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.