Saturday, August 13, 2011

What happens to an LLC upon death?

Unless the charter of the LLC says otherwise, the share of ownership becomes part of the estate of a deceased person. Many charters have a provision allowing a buy-out of such shares at a specific price or with a specific formula. There are many variations. The charter of the LLC may provide that the business immediately ceases to exist upon the death of any of the founders, and can only be wound up. Some charters provide that upon death, the ownership reverts to the LLC. I have not read yours, and I suspect you have not either. May I suggest that if you are unable, that you hire someone to read the charter and advise you?

No comments:

Post a Comment