I have a 50/50 LLC and I'm interested in taking over or dissolving the business. I have not presented this to my partner yet but he has basically quit any involvement in the operation and it is not going to be a business fit going forward. I would like to maintain the business if possible although I'm willing to dissolve and re-incorporate on my own. The business is small and has not yet turned a profit. Also, I have contributed over 75% of the start-up capital. There are no details on the operating agreement on how to sale or dissolve. What options to I have to end this arrangement but continue doing business.
State/Country relating to question: Arkansas
nothing yet, considering hiring a lawyer.
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Good evening. If your operating agreement is silent, you have two options: i) The two of you can agree on a buy-out or voluntary dissolution of the company on terms and conditions agreeable to the two of you. 2) If the two of you can't resolve this between the two of you, then you can force the judicial dissolution of the company pursuant to the following Arkansas LLC statutory provision:
4-32-902. Judicial dissolution. On application by or for a member, a circuit court may decree dissolution of a limited liability company whenever it is not reasonably practicable to carry on the business of the limited liability company in conformity with the operating agreement.
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Practiced law for 32 years; also business man
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