Dropping a member of LLC

1 Reply

Hello! I am closing on a flip with a partner soon. We purchased the house under a LLC, and we are both members of the LLC. Now that we are finished with this flip, I'm wondering if I can purchase more properties under the same LLC, if my partner will not be working with me on every flip? Is there a way to drop her from the LLC, or she withdraw? We may work together again in the future, but I'm not sure, and am ready to purchase another house. Any advice much appreciated!

Shannon

Look at your operating agreement. It should detail the procedure for a member to leave.

Also, if you want to cut all ties with the prior property you flip to avoid later possible lawsuit, it may be better to dissolve the company and open another one for the new deal.

Or you can also, instead of selling the property, sell the LLC with the property inside. In some state that would avoid the tax reassesment, the transfer doc and stamps and the deed. It may be advantagous for the new owner.