llc Archives

The LLC Buyout Procedure (Corp. Code § 17707.03)

Published on: December 20, 2023 | By Underwood Law Firm, P.C.

underwood-llc-buyout-procedure-300x300 The statutory LLC buyout is a special remedy designed for lawsuits seeking to dissolve LLCs. After members of the entity sue to dissolve the business, the other members (all of them or some of them) have the statutory ability to avoid dissolution by buying out the membership interests of these “moving parties.”

However, problems can arise, especially when it comes to setting the buyout value. Additionally, there are some situations where the buyout can actually be terminated altogether. At Underwood Law Firm, our attorneys are knowledgeable in the fields of pass-through entities and real property. If you’re looking to proceed with dissolution, then we may be able to help.

When Can an LLC Buyout Occur?

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Valuing Shares in a Corporate or LLC Buyout

Published on: December 15, 2023 | By Underwood Law Firm, P.C.

underwood-corporate-llc-buyout-300x300 When business entities become subject to internal dissension, it’s not uncommon for several members to approach the court system and seek to dissolve the entity. Often, this is in the best interest of all involved.

Sometimes, however, the other members, shareholders, or partners, do not want to let the business go. They feel it can continue to operate. As such, they may invoke a special mandatory buyout to keep the business running. The buyout allows those who want the business to continue to purchase the interests or stocks of those who wish to leave.

For LLCs and Partnerships, the buyout price is determined by the same standard: Fair Market Value. Corporations, on the other hand, conduct buyouts based on “Fair Value.” While this difference may seem minimal, they are ultimately quite different from each other.

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How do you dissolve a Limited Liability Company in California?

Published on: September 27, 2023 | By Underwood Law Firm, P.C.

underwood-how-to-dissolve-llc-california-300x300 LLC’s are perhaps the most common form of business entity in the country on account of their approachability. But their large number means that plenty will and do fail. When this occurs, members of the LLC can file a lawsuit for “involuntary dissolution.”

That said, the non-dissolving members have a way of fighting back: the mandatory buyout. Litigation over buyouts can be fierce, as each member attempts to maximize the value of their interest to secure the largest possible payout. In these instances, the right attorney can make all the difference.

At Underwood Law Firm, our attorneys are knowledgeable in the fields of pass-through entities and real property. If you’re looking to proceed with dissolution, then we’re here to help.

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