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Say that an LLC was founded by four partners. Two have a 40% ownership stake in the company, two have a 10% stake.

The company manages to break even every year. No profit distributions are made.

After a period of four years, one of the 40%-ownership partners wants to exit the company. The partner decides simply to give his ownership stake back to the company.

What happens to that ownership stake? Does it go into a pot to be offered to others at a later date? Does it have to be distributed to the remaining members? Is either one legally possible under an LLC, assuming the bylaws or operating agreement spell out one of the options?

Blake B.
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1 Answers1

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There are two ways to "exit" a partnership. 1) have the other partners buy you out.2)you can "quit"a partnership and likely have a loss to report but no cash.

max fisher
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