• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

Dissolving an LLC

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

compguy

Junior Member
What is the name of your state? Massachusetts

I am one of two members in an LLC. I am the only creditor to the corporation and my partner was a sweat equity partner.

It is a 50/50 share split.

After two years, I have made a request to him that we dissolve the LLC. I have not heard back from him yet.

As the creditor, can I state a claim against the LLC? And can he deny such a claim? The assets do not even come close to covering what is owed to me by the business.

Can a single individual operate an LLC, or does there need to be more than one individual to form an LLC?
 


ReiterLaw

Junior Member
Not sure what the law in Mass. is, but in most, if not all, states a single member LLC is allowed by law. As far as the dissolution and making a creditor's claim against the LLC, you will need to have documentation proving the existence of your claim against the LLC. However, as a practical matter, if there are no remaining assets then you may be out of luck. Your Operating Agreement will govern the dissolution and you should refer to it as well as engage local counsel to assist in the dissolution. State statutes are very specific about LLC dissolution procedures and if they are not followed properly you open you and other members up to possible personal liability. Spend a couple hundred bucks to make sure it is done correctly.
 

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top