What to do when a member leaves a new LLC?

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What to do when a member leaves a new LLC?

I just formed an LLC in Kentucky. The company has done no business yet and won’t
for at least a few months. The expenses spent on the company are solely the cost
of forming the LLC. One of the 3 members whose name is on the paper work filed
with the state has moved out of town and wishes to leave the company since they
will no longer be able to help out and doesn’t need any compensation/buyout we
haven’t made any money yet How do I go about this?

Asked on October 17, 2017 under Business Law, Kentucky

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

Amend your operating agreement, with an amendment signed by all members (including the departing one) that he is giving his interest to the other 2, in whatever percentages to each you all agree to (e.g. half his share to each remaining member) and is being released from all liability or obligations. Or if you don't have a written operating agreement (though you should), draft a short agreement that he is giving his interest to the other two members in exchange for them releasing him from any/all obligations in regards to the LLC. Then amend the information with the state, which you should be able to do online.


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