Legal Question in Business Law in Tennessee

limited liabilty corporation

What are the steps that need to be taken to remove an individual from an LLC?


Asked on 10/26/06, 11:28 am

2 Answers from Attorneys
Alan Crone Crone & McEvoy, PLC

Re: limited liabilty corporation

It depends on the LLC's operating agreement and what kind of business the LLC operates, and the financial condition of the LLC. It can be done by agreement or via court action. A negotiated settlement is by far the best if it can be done. The most complex issue is a valuation of the departing member's share of the company. This is of course only an issue if the company has a positive value.

Great care should be taken when dissolving an LLC or expelling a member. You should consult an attorney familar with this area before going too far. There are a number of tax considerations to be handled.

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Answered on 10/26/06, 3:03 pm
David Slater David P. Slater, Esq.

Re: limited liabilty corporation

A new or amended filing with the State is necessary.

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Answered on 10/26/06, 3:48 pm


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