Q: i am looking to sell my llc and my partner is under the assumption he will get back all of his initial startup costs
before our percentage split is this true as we dont have an operating agreement
A: The sell and distribution of proceeds would be controlled by statute. The statutes that deal with this are more complex- and this is a simplification: If someone is buying the entity - creditor's claims would be dealt with first. After paying creditors if there are funds left over - any amount would be distributed in accordance with the members' ownership interests.
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