Legal Question in Business Law in New Jersey

Generally speaking, having an ownership interest in an LLC is a type of property. The good news is that merely "walking away" does not mean that the person looses their property. Whether the brother can "shut him out" depends or whether the brother has the right to do so under the operating agreement of the LLC. Reviewing and understanding the operating agreement is key to this situation. For example, the operating agreement may not give the brother the right to "shut him out", but that maybe the brother has the right to buy your husband out.

The bottom line is that what the brother can do depends on the operating agreement of the LLC. If the LLC does not have an operating agreement then the default LLC laws will apply.

Your husband has property rights in his share of the LLC and his brother can't just take that share away. It's a good idea to have a lawyer review the operating agreement and the circumstances to understand everyone's rights and responsibilities. More important if there is no operating agreement a lawyer will advise on the legal rights.

Contact me directly.

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Roman R. Fichman, Esq.

www.TheLegalists.com │ @TheLegalist

email: Info (@) TheLegalists (dot) com

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