Legal Question in Business Law in New York

Generally speaking,

First one needs to look at the operating agreement of the company and review the qualifications and threshold for the sale that may exist. For example other members of the LLC may have a right of first refusal or the members could be prohibited completely from selling their membership interest or a portion of it.

Second, the members would have to vote and issue the appropriate company resolutions to permit the sale.

Third, the company would enter into a membership interest purchase agreement with the buyer.

I would be happy to chat with you further. Feel free to contact my office at your earliest convenience.

Roman R. Fichman, Esq.

www.TheLegalist.com │ @TheLegalist

email: Info (@) TheLegalist (dot) com

t e l : 2 1 2 -- 3 3 7 -- 9 8 3 7

Disclaimer: This post has been written for educational purposes only and was not meant to be legal advice and should not be construed as legal advice or be relied upon. The post may contain errors, inaccuracies and/or omissions. You should always consult an attorney admitted to practice in your jurisdiction for specific advice. This post may be deemed as Attorney Advertising.

Once you have found a target to acquire a percentage of your business, you, yourself, or with the help of an experienced corporate/business law attorney, must then conduct thorough due diligence of the individual(s) or entity buyer, as there are certain legal consequences and liabilities that may attach as a result from the partial sale of your business, as well as determining various issues such as credit worthiness and reputation of the buyer, etc. After discussing the terms of the sale with your attorney, the attorney would then put together a term sheet detailing a host of considerations from purchase price to payment terms, collateral, structure of the deal to transfer issues, all non-binding and subject to negotiation. Once the terms of a sale has been determined, the two parties are free to agree to the terms of the agreement and perfect the sale. In any event you would need to consult with an experienced corporate/business law attorney, in addition to consulting with your accountant and/or tax adviser.