Question
We are an LLC with three partners. One of the partners is leaving, we have reached a buy out agreement. The question is how do we divide his shares among the remaining partners. Proportionally to their percentage of ownership or evenly? The operating agreement didn't specify it. What's the common practice? Thanks.
Answers: 1 public & 0 private
This should be a lesson as to why an operating agreement should include provisions covering such a situation.
In my experience, LLC members in such a situation would buy the leaving member out pro rata and individually absorb his membership interests pro rata; thus, in a basic example, with two remaining members you each have 49.999% ownership provided you each contribute the same capital (i.e., $), proportionally, to split the leaving member's interest.
The two of you can make this more or less complicated, but it would be prudent to consult a local attorney to discuss specific factual issues and to acquire a recommendation.
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