Series 22: 1.1.4.2.3. Dissolution

Taken from our Series 22 Top-off Online Guide

1.1.4.2.3.  Dissolution

LLCs generally have a limited life. They only exist until some event specified in the articles of organization is triggered, such as a designated date or the program’s completion. It is increasingly common for states to offer the option of forming a perpetual LLC whose life does not have a predetermined limit. However, any LLC may be dissolved under circumstances that vary by state, but commonly include events such as the death or bankruptcy of a member, the failure of the LLC to pay its annual fee, or simply by a vote of the members. If an operating agreement doesn’t specify voting procedures for a dissolution, the state’s own conditions will prevail, which might be a unanimous or majority vote, or one based on the percentage of ownership interests.

Once an LLC has voted to

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