Legal Question in Business Law in Virginia

Equitable dissolution of small retail business

My mother and I own a retail business together--it started as a partnership and now is a LLC. We realize sales of about $350,000 a year and each take a salary of $25,000 a year, plus have our cars paid for by the business. I am moving out of the state and would like to either sell her my share, or sell the business outright, neither of which she feels if fair, since I'm the one leaving. My concern is not only for our personal relationship, but also how to fairly and legally handle this. How do we go about figuring out how much my share is worth? Is this an issue for an accountant, or a lawyer, or both? Would we take into account monies that I have taken out of the business that she hasn't, such as my salary for the first year, and some taxes that the business paid for me personally?

Any help would be appreciated!


Asked on 8/16/06, 1:32 pm

1 Answer from Attorneys
Bernard Dietz Law Offices of Bernard C. Dietz, PC

Re: Equitable dissolution of small retail business

Do you have an Operating Agreement for the LLC? If you do, then it should provide for how a member (owner) leaves the company and a mechanism for valuing that member's share. If not, and you want to handle it amicably, then you will need to negotiate a number. An attorney or accountant may be able to help you determine a number that makes sense for both of you. You should also have an attorney draft the appropriate paperwork for the transfer to avoid potential future problems. Contact me if you would like to discuss this in more detail.

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Answered on 8/16/06, 2:07 pm


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