Buying Partner's Share Of LLC
My partner (50-50) passed away recently and I have the option of buying his side out at a very good price. I have the cash. Does anyone know HOW this is done? It states in the operating agreement that The remaining member has the right ,for a period of 90 days to purchase the interest of the deceased member. and spells out how to figure the amt. and done by a CPA. Thats been done, How is it recorded and who do the funds go to? The lawyer that is handling the probate for the estate? The time is winding down so I would like to close it as fast as possible.
Contact the lawyer hadling the estate, see if the estate has an administrator and go from there
No recording is necessary for purchasing an LLC interest.
First advice: Meet with your lawyer who can make sure you go through the process properly. It's not difficult, but you want ot make sure its done correctly, espcially if the LLC interest is of some value.
If the operating agreement clearly gives you the right to purchase, and the mechanism for determining price, you should simply write a letter to the estate lawyer stating that you intend to exercise that right for such-and-such a price and that you will contact him or her to arrange transfer of the funds.
Make sure that you complete the transaction prior to the deadline or the right to purchase turns into a pumpkin.
Your attorney should draw up an assignment agreeement or such memorializing the transaction, which you and the estate's representative should execute.
After the transfer, your attorney can help you amend the LLC agreement to operate as a single member LLC.
Best of luck.