How to Leave an LLC
LLC is an abbreviation for a limited liability company, which is a type of business entity. An LLC can be created by an individual or partners who want to start a business together. If you are in an LLC partnership and want to leave, you need to find out the specific rules and procedures for your state, since regulations for leaving or dissolving an LCC vary by state.
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Instructions
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Go through the LLC operating agreement, which was written at the time of registration. This agreement is made between the LLC's partners and members. In case someone wants to leave or the LLC is dissolving, the agreement states restrictions, duties and rights. Follow the points made in the agreement and complete any duties as required to leave the LLC.
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Follow your state's LLC rules as a default, in case an operating agreement is not in place. This procedure often includes filling out the proper forms and dealing with taxes and liabilities of the LLC. Include on the forms the names of the LLC's existing members. The state, however, will not spell out all your options for leaving the LLC; it will only tell you the basic items you need to consider or remember. To get a copy of the requirements and laws regarding LLCs, contact your secretary of state's office. This needs to be done before you can take any legal action.
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Appraise your correct ownership amount if buying out is an option. Sometimes other partners will buy the leaving member's share for a predetermined amount. To determine the value of your share of the business, evaluate how much your investments have appreciated over the years the LLC has been in operation. Sell your entire share of the company if you want to get out completely.
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Make a list of the steps required to leave if members are not willing to buy you out of the LLC. If you do not have an operating agreement in place, follow your state's LLC laws.
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Stay active in the process, as you still have ownership in the LLC until it has been officially declared that you are out. File your resignation with the secretary of state's office to indicate you are ending your partnership with the LLC. You remain an active partner in the LLC during the resignation process and you will still be held liable for debts in the company.
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References
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