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
The duo of Afriland Properties Plc and Geo-Fluids Plc crashed the NASD Over-the-Counter (OTC) Securities Exchange by a marginal 0.06 per cent on Wednesday, December 11 due to profit-taking activities.
The OTC securities exchange experienced a downfall at midweek despite UBN Property Plc posting a price appreciation of 17 Kobo to close at N1.96 per share, in contrast to Tuesday’s closing price of N1.79.
Business Post reports that Afriland Properties Plc slid by N1.14 to finish at N15.80 per unit versus the preceding day’s N16.94 per unit, and Geo-Fluids Plc declined by 1 Kobo to trade at N3.92 per share compared with the N3.93 it ended a day earlier.
At the close of transactions, the market capitalisation of the bourse, which measures the total value of securities on the platform, shrank by N650 million to finish at N1.055 trillion compared with the previous day’s N1.056 trillion and the NASD Unlisted Security Index (NSI) went down by 1.86 points to wrap the session at 3,012.50 points compared with 3,014.36 points recorded in the previous session.
The alternative stock market was busy yesterday as the volume of securities traded by investors soared by 146.9 per cent to 5.9 million units from 2.4 million units, as the value of shares transacted by the market participants jumped by 360.9 per cent to N22.5 million from N4.9 million, and the number of deals increased by 50 per cent to 21 deals from 14 deals.
When the bourse closed for the day, Geo-Fluids Plc remained the most active stock by volume (year-to-date) with 1.7 billion units valued at N3.9 billion, followed by Okitipupa Plc with 752.2 million units worth N7.8 billion, and Afriland Properties Plc 297.5 million units sold for N5.3 million.
Also, Aradel Holdings Plc, which is now listed on the Nigerian Exchange (NGX) Limited after its exit from NASD, remained the most active stock by value (year-to-date) with 108.7 million units sold for N89.2 billion, trailed by Okitipupa Plc with 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with 297.5 million units worth N5.3 billion.
By Adedapo Adesanya
The euphoria around the recent appreciation of the Naira eased on Wednesday, December 11 after its value shrank against the US Dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) by N5.23 or 0.3 per cent to N1,547.50/$1 from the N1,542.27/$1 it was valued on Tuesday.
It was observed that spectators’ activities may have triggered the weakening of the local currency in the official market at midweek as they tried to fight back and ensure the value of funds in foreign currencies strengthened.
The domestic currency was regaining its footing after the Central Bank of Nigeria (CBN) launched an Electronic Foreign Exchange Matching System (EFEMS) platform to tackle speculation and improve transparency in Nigeria’s FX market.
At midweek, the Nigerian currency depreciated against the Pound Sterling by N3.56 to close at N1,958.68/£1 compared with the preceding day’s N1,955.12/£1 and against the Euro, it slumped by 34 Kobo to trade at N1,612.66/€1, in contrast to the previous session’s N1,613.00/€1.
As for the black market segment, the Naira lost N45 against the American currency during the session to quote at N1,670/$1 compared with the N1,625/$1 it was traded a day earlier.
A look at the cryptocurrency market showed a recovery following profit-taking as the US Consumer Price Index report matched economist forecasts.
The news was enough to convince traders that the Federal Reserve is certain to trim its benchmark fed funds rate another 25 basis points at its meeting next week.
The move also saw Bitcoin (BTC), the most valued coin, return to the $100,000 mark as it added a 2.9 per cent gain and sold for $100,566.12.
The biggest gainer was Cardano (ADA), which jumped by 15.00 per cent to trade at $1.16, as Litecoin (LTC) appreciated by 10.4 per cent to sell for $121.76, and Ethereum (ETH) surged by 7.0 per cent to $3,929.30, while Dogecoin (DOGE) recorded a 6.7 per cent growth to finish at $0.4181.
Further, Binance Coin (BNB) went up by 5.2 per cent to $716.72, Solana (SOL) expanded by 4.6 per cent to $229.77, and Ripple (XRP) increased by 4.2 per cent to $2.43, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) closed flat at $1.00 apiece.
By Aduragbemi Omiyale
The Dangote Refinery located in the Lekki area of Lagos State has made its first export of premium motor spirit (PMS) just three months after it commenced the production of petrol.
In September 2024, the refinery produced its first petrol and began loading to the Nigerian National Petroleum Company (NNPC) on September 15.
However, due to some issues, the facility has not been able to flood the local market with its product, forcing it to look elsewhere.
In a landmark move for regional energy integration, Dangote Refinery has partnered with Neptune Oil to take its petrol to neighbouring Cameroon.
Neptune Oil is a leading energy company in Cameroon which provides reliable and sustainable energy solutions.
Dangote Refinery said this development showcases its ability to meet domestic needs and position itself as a key player in the regional energy market, adding that it represents a significant step forward in accessing high-quality and locally sourced petroleum products for Cameroon.
“This first export of PMS to Cameroon is a tangible demonstration of our vision for a united and energy-independent Africa.
“With this development, we are laying the foundation for a future where African resources are refined and exchanged within the continent for the benefit of our people,” the owner of Dangote Refinery, Mr Aliko Dangote, said.
His counterpart at Neptune Oil, Mr Antoine Ndzengue, said, “This partnership with Dangote Refinery marks a turning point for Cameroon.
“By becoming the first importer of petroleum products from this world-class refinery, we are bolstering our country’s energy security and supporting local economic development.
“This initial supply, executed without international intermediaries, reflects our commitment to serving our markets independently and efficiently.”
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