Legal Question in Business Law in New Jersey

just what needs to be paid to her depends on a lot of factors, this is not a simple question.

I can explain things in detail. Why don't you come see me. I will meet with you and go over your situation. I will explain what legal issues I see, and what I can do to assist you. I will also give you my best estimate of the cost for attorney's fees.

This will be a free consultation. After we talk, you can decide what you would like to do.

Give me a call, make an appointment to come see me, and let's get moving on this for you. No charge for the telephone call and no charge for the first office visit.

Robert Davies, Esq. 201-820-3460

The Davies Law Firm, P.A.

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DISCLAIMER: Please keep in mind that my response is just a general comment on your question, and not legal advice. I have answered based upon the law of the State of New Jersey where I practice; the laws in other states may be very different, and may result in very different outcomes. Your question and any response does NOT create an attorney-client relationship between you and this law firm. The exact details of your situation and things that you have not mentioned in your question can completely change the response I gave. You can not rely upon what I have written as legal advice, because I do not have all of the information that I need to advise you, I only have the very small amount of information that you put into your question. To get legal advice that you can rely on and use, please contact me directly.

Well, if it's truly a NJ partnership (i.e., not an LLC or corporation), if a partner is dissociated from a partnership without resulting in a dissolution and winding up of the partnership business, in absence of an agreement, the partnership must cause the dissociated partner's interest in the partnership to be purchased for a the fair value as of the date of withdrawal based upon the right to share in distributions from the partnership. In a corporation, generally, in the absence of an agreement, there is no obligation to repurchase a shareholder's stock. In a NJ LLC, upon resignation the member is entitled to receive any distribution to which he is entitled under an operating agreement and, if not otherwise provided or permitted in an operating agreement, he is entitled to receive, within a reasonable time after resignation, the fair value of his limited liability company interest as of the date of resignation, less all applicable valuation discounts, unless the operating agreement provides for another distribution formula.

As H.L. Mencken said, �For every problem there is a solution that is simple, neat and wrong.� Kindly note and remember that my response is merely a general comment on the law related to your question, and NOT legal advice or opinion. Also, your question and my response does NOT create an attorney-client relationship between us. You cannot rely upon what I have written, because I do not have all of the information that I need to advise you or render an opinion. Even simple facts you have not shared can completely change my answer. For me to give you legal advice or opinion, you would need to hire me to be your lawyer, and then we would need to discuss this in detail and go over the documents. Please visit my website! www.bgartenberg.com or call me if you�d like to learn more about me or my practice. Thank you.

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To expand on my colleague's remarks:

The valuation depends on the type of business entity that was created (corporation or LLC) and the agreements that exist between the "partners". If there is no official entity then the group is a partnership and there are special rules that would applied in such an event.

The second issue is the buy-out amount. This is done by first valuing the business and then valuing the portion belonging to the "partner" that wants to leave. There are many ways to value a business and many factors such as historical, current and projected profits and cashflow, need for capital expenditure in the near future, the industry the company is in, the economy, how similar businesses are being valued, how many potential purchasers might be interested in the "partner's" share, goodwill and IP, assets of the business, its liabilities, how dependent is the business on the "partner".

I would be happy to chat with you further. Feel free to contact my office at your earliest convenience.

Roman R. Fichman, Esq.

www.TheLegalist.com │ @TheLegalist

email: Info (@) TheLegalist (dot) com

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Disclaimer: This post has been written for educational purposes only and was not meant to be legal advice and should not be construed as legal advice or be relied upon. The post may contain errors, inaccuracies and/or omissions. You should always consult an attorney admitted to practice in your jurisdiction for specific advice. This post may be deemed as Attorney Advertising.