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John, Attorney
Category: Business Law
Satisfied Customers: 5619
Experience:  Licensed and practicing attorney helping businesses achieve their legal and practical goals.
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I own 50% of a construction company, we are an LLC based in

Customer Question

I own 50% of a construction company, we are an LLC based in Louisiana. We have no written agreement. Workload, assets and profits are all split equally. What is my legal responsibility when opting out of the company and what am I entitled to?
Submitted: 2 years ago.
Category: Business Law
Expert:  John replied 2 years ago.
My name is John. I have over 13 years of legal and counseling experience in these types of matters, and I’m happy to assist you with your question today.
This is why when there is a multiple-member LLC it is strongly encouraged to have bylaws and an operating agreement to dictate what happens in given situations before they occur.
In any event, that ship has sailed. Normally what occurs is the other members and the member wishing to leave have a pre-determined method of computing the fair market value of the company, and the other members get the right of first refusal to purchase the share of the member that wishes to dissolve. If they are unable to come to an agreement or the other members just refuse, the departing member is able to sell his share to anyone.
So either the other members take the share and just eliminate the member from the corporate documents or a new member comes in. The alternative you have to this in your case would be to approximate your share of the capital, and take that in exchange for your agreeing to the LLC then becoming a single-member LLC. Hopefully the other party is amicable to either of these solutions, otherwise, the matter has to go to court to be litigated; the judge making the decision as to what is a fair split.
I believe this answers your question. However, if you need clarification or have follow-up questions regarding this matter, I will be happy to continue our conversation – simply reply to this answer. If you are otherwise satisfied with my response, please leave a positive rating as it is the only way I am able to get credit for my answers; otherwise the website just keeps your payment and doesn’t credit me at all. Thank you, ***** ***** wish you all the best with this matter.
Expert:  John replied 2 years ago.
I am sending you this follow-up to determine if you require further assistance with your matter. I believe I have answered your question to the best of my abilities. I truly enjoy helping others with my knowledge and experience, and I believe I provide a valuable service. If you agree that my response was of value to you, please support my endeavor to share my knowledge by providing positive feedback; it is the only way I get credit for the knowledge I share. Thanks.