What are my rights if I want to leave the LLC business that I formed with 2 other partners?
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What are my rights if I want to leave the LLC business that I formed with 2 other partners?
We do not have an operating agreement and are unsure how to calculate what my 33% membership interest of the business is worth. In addition, I would like to resign this week, but am unsure if I will forfeit any of my legal rights to just compensation by doing so. Can you please advise me on how to proceed? Will my resignation inhibit my ability to be fairly compensated for my membership interest in the LLC? What is the best way to appraise the value of a small business operating for less than 2 years but growing and expanding?
Asked on June 12, 2014 under Business Law, Kansas
Answers:
Shawn Jackson / The Jackson Law Firm, P.C.
Answered 10 years ago | Contributor
First, slow down a bit...it took time to develop and form the company...and it will take wisdom and experience to create a positive exit plan. With that being said, without a LLC Operating Agreement, depending upon the State in which you live, either the LLC regulations or the Partnership rules will apply. In any event, you will want to first explore one of the many free mediation services...many of which are available in California.
Shawn Jackson California Business Attorney/Mediator
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