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Dimitry K., Esq.
Dimitry K., Esq., Attorney
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I have an Officer in My LLC that wants to have a 0 interest

Customer Question

I have an Officer in My LLC that wants to have a 0 interest . He has been an absentee owner and he is willing to transfer complete ownership to myself
How do you do this?
Submitted: 5 years ago.
Category: Business Law
Expert:  Dimitry K., Esq. replied 5 years ago.
The best way is to buy out his shares.

Do you know how many shares or what percentage of the business he control and what you control?
Customer: replied 5 years ago.

Hi Dimitry ,

 

We have equal 50% ownership currently

 

It is a California LLC been in operation for 3 years

 

 

 

Expert:  Dimitry K., Esq. replied 5 years ago.
There is the fast way and there is the long and complicated way.

The fast way is for you to repurchase his interest in the company by buying his shares/interest and have him sign a contract in which he formally gives up all rights to the company. Just be aware that as a solo holding an LLC, you may become a bit more liable for "piercing the corporate veil" issues in terms of possible suits.

The complicated way is to find an accounting firm or professional who can help figure out the full cost of the business. By figuring out the full cost, giving the partner half of that and also getting a contract should suffice. You could also make that number more flexible by giving more equity stake in the company to those that have been putting in "skull equity" or actual work in the business, and balance that against the starting capital each of you put in.

No matter how you evaluate the business, you would have to contact the CA Department of State and you, at their request, may have to re-incorporate the business minus your partner. Again, that is generally done at their request.

Sincerely,

Dimitry Alexander Kaplun, Esq.
Dimitry K., Esq., Attorney
Category: Business Law
Satisfied Customers: 38780
Experience: Run my own successful business/contract law practice.
Dimitry K., Esq. and 3 other Business Law Specialists are ready to help you
Customer: replied 5 years ago.

Yes the answer is good

 

But it would be more complete if it named the forms you have to fill out

and walk through the complete transaction

Expert:  Dimitry K., Esq. replied 5 years ago.
Go to:

www.sos.ca.gov/business/corp/pdf/dissolutions/corp_stkdiss.pdf

And follow the requirements as to how to dissolve and rebuild your LLC if it comes down to it.

Sincerely,

Dimitry Alexander Kaplun, Esq.

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Dimitry K., Esq.
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Run my own successful business/contract law practice.