If I’m a managing member in a partnership/LLC, what are my rights regarding a buyout?

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If I’m a managing member in a partnership/LLC, what are my rights regarding a buyout?

The shares are split 90% for my partner 10% for me. We have profited every year but one. I have paid taxes on my K-1 profit sharing but the profits were never distributed. He wants to buy me out. Does he owe me my share of the profit sharing, plus 10% of the total valuation of the company?

Asked on February 20, 2013 under Business Law, Florida

Answers:

Keith J. Kanouse / Kanouse & Walker, P.A.

Answered 8 years ago | Contributor

Probably.  I would need to review the Operating Agreement and financial statements to give you a firm opinion.  You would want to get an appraisal of the value of the business and your minority interest,


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