dissolving an architecture office

[beecroft]

What is the name of your state? California

I and a friend started an architecture office about 5 years ago as an LLC. We've never made much money and lately I have had to get a full time job outside the office to support myself. I am enjoying my new job and want to move on with my life. My partner however has more cash reserves and wishes to continue with the business, which is making enough money for one person at least. How do I extricate myself from the LLC? Should I ask to be bought out? I've invested many years at low pay and built up the company, including many intangible assets: a portfolio of fine work, construction detail libraries, templates for various contracts and correspondences, etc. If I do ask to be bought out how do we place a value on the company? What if my partner doesn't want to buy me out? Any advice?What is the name of your state?

 

[TomD1974]

Do you have any contract in place with your partner? That is a starting point.

He probably knows where your head is right now and it might not be a bad idea to bring up the subject with him. If the company has value, then yes, you should ask him to buy out your share. What is your stake in the company? Will your partner see it the same way?

As for valuation, there is no cut and dried answer. The short answer might be net present value of all future earnings. Or it might be liquidation value of the assets (minus liabilities of course). But really, a company could sell for much more or much less than those figures depending on the circumstances and the buyer. That is why a starting point might be to casually discuss this with your partner and start throwing around some numbers and see if you can come to an agreement. It sounds like you personally are flexible. That is a good thing.

These issues can be sticky. Hopefully you will only need to get an attorney involved when it comes time to draft your final contract.