How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask WiseOwl58 Your Own Question
WiseOwl58, Attorney
Category: Business Law
Satisfied Customers: 3684
Experience:  Experienced business lawyer.
Type Your Business Law Question Here...
WiseOwl58 is online now
A new question is answered every 9 seconds

If I am involved in an LLC with 50% ownership, am I able to

Resolved Question:

If I am involved in an LLC with 50% ownership, am I able to force the dissolution of the LLC? If not, what are my options?
Submitted: 5 years ago.
Category: Business Law
Expert:  WiseOwl58 replied 5 years ago.
No you would need a majority vote of the members to dissolve it and 50% of the membership is not a majority. This is true unless the operating agreement or the specific statute of your state provides differently.

If you are not able to dissolve the LLC, you may resign all of your positions as an officer or manager of the LLC and just become a passive member. You can also sell your shares, provided that the operating agreement doesn't provide any restriction on sale of membership units.
Customer: replied 5 years ago.
This LLC is in CA and it is actually just for a sport tournament that occurs once a year. If the route of passive partnership is taken, do I still have the rights to financial information or any decisions?
Expert:  WiseOwl58 replied 5 years ago.
Yes, you would still have all of the rights of a member, it would just mean that you did as much or as little as you wanted. You see, as an equity owner, you are not required to do anything, as you would be required to do if you were an officer or the manager of the LLC.

However, since you do not wish to be involved, perhaps you should speak to the other 50% owners about either dissolving the LLC or buying out your share of it, then you wouldn't have to be involved at all.

But to your question, as a member, you are not required to do anything, but you would still be entitled to your share of the profit and your right to vote your membership interest.

Please press the green ACCEPT button. Thanks.
WiseOwl58 and 2 other Business Law Specialists are ready to help you