One member of LLC is trying to force business through partition sale. What are my options?
Key points
LLC clause indicates that The death, legal incompetency, liquidation, dissolution, Bankruptcy or withdrawal of any Investor Member shall not dissolve the Company.
3rd member went into side deal with one member of current LLC in his other business and both of them had fallout in that business.
Now, 3rd member wants to force sell this entire LLC through partition sell.
My concerns
1) I prefer not to sell due to tax planning. Sell will place me in the highest tax bracket.
What are the feasible options here? I will appreciate insights. Thanks
Key points
- 3 Members LLC
- 2 Members don't want to sale (including me). 2 members have combined 55% of partnership.
- 3rd Member tried to sell his partnership interest in open market and couldn't find buyer. He offered his percentage to other 2 members at unrealistic price. Purchase of this membership interest may require significant upfront cash (roughly 300 to 400k) from purchaser.
LLC clause indicates that The death, legal incompetency, liquidation, dissolution, Bankruptcy or withdrawal of any Investor Member shall not dissolve the Company.
3rd member went into side deal with one member of current LLC in his other business and both of them had fallout in that business.
Now, 3rd member wants to force sell this entire LLC through partition sell.
My concerns
1) I prefer not to sell due to tax planning. Sell will place me in the highest tax bracket.
What are the feasible options here? I will appreciate insights. Thanks
Statistics: Posted by NYGiantsFan — Wed Aug 21, 2024 11:35 am — Replies 1 — Views 72