Legal Question in Business Law in New Hampshire

LLC Partnership

I am currently a LLC partner with my sister-in-law. We have owned a small child care for the last two years and I am looking to move on to a new career. I would like to withdraw my partnership and give my sister-in-law sole ownership of the child care and she is in complete support. I am wondering what the process is for me to achieve this withdrawal? Is it necessary to have a lawyer? and Is it expensive to withdraw? Thank you for your time.


Asked on 10/22/07, 5:54 pm

2 Answers from Attorneys
Bruce L. Dorner Dorner Law Office

Re: LLC Partnership

An LLC is a unique legal entity. The answer to your question would likely be found in the Operating Agreement which should have been prepared at the time the LLC was formed. LLC's do not have partners. They have "members." The transfer of membership interests is generally not a major legal entanglement. However, there are often significant tax implications. I suggest that involving an attorney would be in your best interest.

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Answered on 10/23/07, 7:55 am
Lawrence Graves Coolidge & Graves PLLC

Re: LLC Partnership

Minor refinement on Bruce Dorner's reply (which is correct): the LLC statute allows voluntary withdrawal (an "event of dissociation") unless the LLC's operating agreement prohibits it (I've never seen one that does so); thus, if your intent is truly to leave the business to your sister with no compensation, you can probably do so quickly and easily. Ask Bruce to look at the LLC documents -- he's a great guy and you will enjoy working with him.

Best wishes,

LDWG

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Answered on 10/23/07, 11:11 am


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