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How do I remove my name from an LLC partnership
Anonymous2 views3 answers
I decided to start a small LLC business with a friend. That friend decided to include one of his friend, whom he vouched for. The friend knew a family lawyer who would be able to take care of the paperwork needed to get everything started. I was a little skeptical at first, but I trusted my friends judgment. unfortunately for me, they started making decisions without me, in terms of the business name, the location, and the type of service we will provide. Furthermore, they stop communicating with me. I then decided I did not want to be involved anymore. I tried to reach out to the lawyer who did all the paperwork, but could not reach her. Then two detectives came by looking for the guy I did not know. Not sure why, but they asked me few questions about the business
You should hire a lawyer to represent you immediately. There may be additional problems with which you need legal help. In answer to your original question, the method for withdrawing from the LLC should be set out in the articles of organization and operating agreement.
Melissa D. LenhardFranchise LawyerPhiladelphia, PA ·
Because you are a member of the LLC, you can be held liable for the actions of the other members of the LLC when they act on behalf of the company. For example, if the other members take on debt on behalf of the company, you may be held liable for that debt. This makes it even more important that you know and trust your business partners. If you don’t, then you need to get out of the business.
Since your friend had a lawyer form the LLC, that lawyer should have drafted an Operating Agreement that you and the other members signed after formation of the company. An Operating Agreement sets forth the rules and guidelines by which the company operates, including, among other things, how the company is managed, how decisions are made, and how to withdraw from the company. Depending on the wording of the Operating Agreement, the other members may be violating its terms by not including you in the decision-making. Regardless, in order to get out of the company, you will need to withdraw. To learn how to do that, you must look to the provisions of the Operating Agreement in regard to voluntary member withdrawals. It sounds, however, like you will need legal help, and I suggest you hire a lawyer. And make sure that the lawyer represents you individually, and not your LLC.
John Nathan VaughanContracts / Agreements LawyerSpringfield, MO ·
As mentioned in another answer, your rights (and the rights and obligations of the other members of the LLC) are governed by an operating agreement, or if no operating agreement was created, then by your state statutes governing LLCs. Typically, if a lawyer helped create the LLC, there will be an operating agreement involved. If so, the operating agreement is a document you would have signed (along with the other members) that states your ownership interest in the company, how voting and management of the company is governed, and ultimately how to withdraw from the company.
If a lawyer helped create the LLC, there may also be a separate document, typically called a "buy-sell agreement", that lays out the terms of how to buy out or sell out interests in the company. Sometimes these provisions are in the operating agreement, but I oftentimes see them in a separate "members agreement" or "buy-sell agreement" document. If such a document is in play, it too will have some effect on your ability to withdraw.
You cannot simply remove your name from the LLC. There will be process involved, and that best process would best be managed by a lawyer licensed in your state who has an understanding of LLCs, the state statutes, and who can review the documents in play and give you some direction. There may also be litigation strategies, such as a partition action, that can break up the LLC involuntarily, but that can get costly and complicated. Your best option is to find a local lawyer who can help you figure out the best plan of action. I've had clients in this situation before (either trying to get out of a company or trying to get someone else out of a company) and it's important to pay attention to the details to make sure it's done right.