LLC Withdrawal and Dissolution – Why Explicit Provisions in the Operating Agreement Are Necessary: APPEALS LAWYER, LLC Withdrawal and Dissolution – Why Explicit Provisions in the Operating Agreement Are Necessary

Introduction

Over the past decade, the Limited Liability Company (“LLC”) has become one of the most favored forms of a closely held business organization in New York. As an unincorporated business entity, the LLC is favored because of its pass-through tax treatment coupled with maximum operating flexibility. However, an LLC also demands a well-written and comprehensive operation agreement – especially with regard to withdrawal and dissolution – because it may create the only chance for a member to exit the company.

Under Limited Liability Company Law (“LLCL”)