Legal Question in Business Law in California

My brother-in-law transferred part of his shares of a LLC and SCorp to me without my knowledge last year. He passed away before we discovered what happened and it came to light as I planned to do my taxes this year. I do not want any shares that were transferred to me. Is it possible to undo retroactively and allow those shares to return to this person who is now deceased? The original plan was for my sister, his wife, to take over his share of their business and I do not want any part of their enterprise.

So the question is whether I can get myself out of being part of the LLC and SCorp retroactively to when he made the changes and filed with the county or will I only be able to do this prospectively?

Thank you.


Asked on 4/29/21, 10:03 pm

1 Answer from Attorneys

Timothy McCormick Haapala, Thompson & Abern, LLP

The good news is that no one can force an ownership interest in a corporation or LLC on you. Without your acceptance, the transfer is not legally complete and is ineffective. The bad news is that undoing what he did will take some work. You need to talk to a local business attorney and go over exactly what he did (not sure what filing with the county has to do with it, since you don't transfer shares of an LLC or corporation with any county agency), and figure out how to void whatever he did.

Read more
Answered on 4/30/21, 11:33 am


Related Questions & Answers

More Business Law questions and answers in California