Economy
Can You Get Out of an LLC Partnership? Here’s What You Should Know
An LLC, or limited liability company, is a business structure that provides limited liability protection to its owners. This means that the personal assets of the owners are protected in the event that the company faces legal action. LLCs are popular among small business owners because they are relatively easy to set up and offer a high level of protection from personal financial risk.
One of the key features of an LLC is that the owners are jointly and severally liable for the debts and actions of the company. This means that each owner is equally responsible for the financial stability of the LLC and can be held liable for any legal issues that may arise. This joint and several liability is one of the main reasons why partners may want to dissolve an LLC partnership.
If one partner wants to dissolve an LLC partnership, there are a few options available.
1) Buy out interest
The first option is to buy out the other partner’s interest in the company. This can be done through a variety of methods, such as negotiating a price for the buyout or taking out a loan to finance the purchase. Once the buyout is complete, the partner who purchased the other partner’s interest will be the sole owner of the LLC.
For example, imagine that John and Jane are partners in an LLC. John decides that he wants to dissolve the partnership and buy Jane’s interest in the company. They agree on a price of $100,000 for the buyout. John takes out a loan for $100,000 and uses the money to purchase Jane’s interest in the company. He is now the sole owner of the LLC.
2) Sell interest to a third party
Another option is to sell the partner’s interest in the company to a third party. This can be done through a variety of methods, such as negotiating a price for the sale or holding an auction. Once the sale is complete, the partner who sold their interest will no longer be a part of the LLC.
Additionally, the partner who buys the interest in the company will become a part of the LLC and will be subject to the same joint and several liabilities as the other partners.
For example, imagine that John and Jane are partners in an LLC. John decides that he wants to dissolve the partnership and sell Jane’s interest in the company. They agree on a price of $100,000 for the sale. John sells Jane’s interest in the company to a third party for $100,000. Jane is no longer a part of the LLC, and the third party is now a part of the LLC and subject to joint and several liabilities. Also, if you were to remove an LLC member in Texas, for example, keep in mind that you’ll need to file a certificate of termination with the Texas Secretary of State. On the other hand, if you’re based in California, then you’ll file a certificate of dissolution with the California Secretary of State instead.
3) Dissolve the LLC
If both partners agree, they can dissolve the LLC entirely. This means that the company will be wound up and all of its assets will be sold off. The proceeds from the sale of the assets will be divided among the partners according to their ownership stake in the company.
Plus, any debts or liabilities of the company will be divided among the partners according to their ownership stake in the company.
4) File for bankruptcy
If the LLC is facing financial hardship, the partners may decide to file for bankruptcy. This will allow the LLC to restructure its debts and liabilities and may provide some relief from creditors.
However, it is important to note that filing for bankruptcy will have a negative impact on the personal credit of the partners.
Not only that but the LLC will be dissolved and all of its assets will be sold off to repay creditors.
Overall, the options available to partners looking to dissolve an LLC partnership are fairly limited. But by understanding the implications of each option, partners can make a decision that is best for them and their business. The bottom line is that if one partner wants out of an LLC, the best thing to do is to negotiate a buyout with the other partner. This will allow the LLC to remain in business and avoid any potential legal issues. If a buyout is not possible, then the next best option is to file for bankruptcy.
By Adedapo Adesanya
Food Concepts Plc neutralized the gains recorded by three securities, returning the NASD Over-the-Counter (OTC) Securities Exchange into the negative territory with a 0.27 per cent loss on Thursday, December 4.
Yesterday, the share price of the parent company of Chicken Republic and PieXpress declined by 34 Kobo to sell at N3.15 per unit compared with the previous day’s N3.49 per unit.
This shrank the market capitalisation of the OTC bourse by N5.72 billion to N2.136 billion from N2.142 trillion and weakened the NASD Unlisted Security Index (NSI) by 9.57 points to 3,571.53 points from 3,581.10 points.
Business Post reports that Central Securities Clearing System (CSCS) Plc went down by 50 Kobo to N38.50 per share from N38.00 per share, FrieslandCampina Wamco Nigeria Plc gained 29 Kobo to sell at N55.79 per unit versus N55.50 per unit, and Geo-Fluids Plc added 5 Kobo to close at N4.60 per share compared with Wednesday’s closing price of N4.55 per share.
Trading data indicated that the volume of securities recorded at the session surged by 6,885.3 per cent to 4.3 million units from the 61,570 units posted a day earlier, the value of securities increased by 10,301.7 per cent to N947.2 million from N3.3 million, and the number of deals went up by 146.7 per cent to 37 deals from the 15 deals achieved in the previous trading session.
At the close of business, Infrastructure Credit Guarantee Company (InfraCredit) Plc was the most traded stock by value on a year-to-date basis with the sale of 5.8 billion units for N16.4 billion, trailed by Okitipupa Plc with 170.4 million units worth N8.0 billion, and Air Liquide Plc with 507.5 million units valued at N4.2 billion.
InfraCredit Plc also finished the session as the most traded stock by volume on a year-to-date basis with 5.8 billion units transacted for N16.4 billion, followed by Industrial and General Insurance (IGI) Plc with 1.2 billion units sold for N420.2 million, and Impresit Bakolori Plc with 536.9 million units traded for N524.9 million.
By Dipo Olowookere
The upward trend witnessed at the Nigerian Exchange (NGX) Limited in recent sessions continued on Thursday as it further improved by 0.10 per cent.
This was despite investor sentiment turning bearish after the local equity market ended with 23 price gainers and 28 price gainers, indicating a negative market breadth index.
UAC Nigeria gained 10.00 per cent to finish at N88.00, Morison Industries appreciated by 9.94 per cent to N3.54, Ecobank rose by 8.53 per cent to N36.90, and Coronation Insurance grew by 8.47 per cent to N2.56.
On the flip side, Ellah Lakes depreciated by 10.00 per cent to N13.14, Eunisell Nigeria also shed 10.00 per cent to finish at N72.90, Transcorp Hotels slipped by 9.95 per cent to N157.50, Omatek shrank by 9.23 per cent to N1.18, and Guinea Insurance dipped by 8.46 per cent to N1.19.
Yesterday, the All-Share Index (ASI) went up by 152.28 points to 145,476.15 points from 145,323.87 points and the market capitalisation chalked up N97 billion to finish at N92.726 trillion compared with the previous day’s N92.629 trillion.
Customs Street was bubbling with activities on Thursday, though the trading volume and value slightly went down, according to data.
A total of 1.9 billion stocks worth N19.2 billion exchanged hands in 23,369 deals during the session versus the N2.3 billion valued at N21.0 billion traded in 21,513 deals a day earlier.
This showed that the number of deals increased by 8.63 per cent, the volume of transactions depleted by 17.39 per cent, and the value of trades decreased by 8.57 per cent.
For another trading day, eTranzact led the activity chart with 1.6 billion units sold for N6.4 billion, Fidelity Bank traded 31.0 million units worth N589.3 million, GTCO exchanged 28.3 million units valued at N2.5 billion, Zenith Bank transacted 27.1 million units for N1.6 billion, and Ecobank traded 21.9 million units worth N744.3 million.
By Adedapo Adesanya
The Naira marginally depreciated against the United States Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Thursday, December 4 amid renewed forex pressure associated with December.
At the official market yesterday, the Nigerian currency lost 0.01 per cent or 18 Kobo against the Dollar to close at N1,447.83/$1 compared with the previous day’s N1,447.65/$1.
It was not a different scenario with the local currency in the same market segment against the Pound Sterling as it further shed N15.43 to sell for N1,930.97/£1 versus Wednesday’s closing price of N1,925.08/£1 and declined against the Euro by 20 Kobo to finish at N1,688.74/€1 compared with the preceding session’s N1,688.54/€1.
Similarly, the Nigerian Naira lost N5 against the greenback in the black market to quote at N1,465/$1 compared with the previous day’s value of N1,460/$1 but closed flat against the Dollar at the GTBank FX counter at N1,453/$1.
Fluctuations in trading range is expected to continue during the festive season as traders expect the Nigerian currency to be stable, supported by intervention s by to the Central Bank of Nigeria (CBN)in the face of steady dollar demand.
Support is also expected in coming weeks as seasonal activities, particularly the stylised “Detty December” festivities, will see inflows that will give the Naira a boost after it depreciated mildly last month, according to a new report.
“As the festive Detty December season intensifies, inbound travel, tourism spending, and diaspora inflows are expected to provide moderate support for FX liquidity,” analysts at the research unit of FMDA said in its latest monthly report for November.
Traders cited by Reuters expect that the Naira will trade within a band of N1,443-N1,450 next week, buoyed by improved FX interventions by the apex bank.
Meanwhile, the crypto market was down as the US Federal Reserve’s preferred inflation gauge, core PCE, likely rose in September—moving in the wrong direction. However, volatility indices show no signs of major turbulence.
If the actual figure matches estimates, it would mark 55 straight months of inflation above the US central bank’s 2 per cent target. The sticky inflation would strengthen the hawkish policymakers, who are in favour of slower rate cuts.
Ripple (XRP) depreciated by 4.5 per cent to $2.08, Solana (SOL) went down by 3.8 per cent to $138.11, Litecoin (LTC) shrank by 3.1 per cent to $83.23, Dogecoin (DOGE) slid by 2.5 per cent to $0.1463, Cardano (ADA) declined by 2.1 per cent to $0.4368, Bitcoin (BTC) fell by 0.9 per cent to $91,975.45, Binance Coin (BNB) crumbled by 0.9 per cent to $899.41, and Ethereum (ETH) dropped by 0.7 per cent to $3,156.44, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) closed flat at $1.00 apiece.
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