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RAnderson29
Level 1

LLC - one member to leave - what to do with owners equity?

We have a 4 member LLC - each person owning 25%. We have been putting money into the business on a regular basis to cover expenses. Each person's deposit has been added to an individual owner's equity category/account ("Owner's Name - Owner's Equity"). Now, one of the owners is leaving the LLC and will not be replaced. What do I do with the owner that is leaving? No one has taken money out of the LLC (no draw). 

2 Comments 2
Rainflurry
Level 14

LLC - one member to leave - what to do with owners equity?

@RAnderson29 

 

Do you have a buyout agreement?  What are the terms?  Did the LLC or the other members buyout the departing member?  

RAnderson29
Level 1

LLC - one member to leave - what to do with owners equity?

The owner agreed to leave without being paid. She's just going to withdraw from the LLC. 

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