See more
Publication date: 24.04.2024
I am your personal lawyer. My goal is to help the client find the best solutions for current legal issues.
A limited liability company (LLC) is a form of business organization characterized by the limited liability of its members. The main features of the LLC are as follows:
Limited liability: The participants (founders) of the LLC are not personally liable for the company's obligations, they are liable only to the extent of their contributions.
Founders: LLC can be founded by one or more individuals or legal entities. The maximum number of founders is limited by law.
Authorized capital: In an LLC, authorized capital is established, which is divided into a certain number of shares (shares). These shares determine the rights and obligations of the participants.
Management bodies: Usually, an LLC has a general meeting of participants and a director (or manager) who carries out operational management of the company.
Accounting: LLC is obliged to keep accounting records and submit relevant reports to state statistics and tax authorities.
Tax obligations: the LLC pays taxes in accordance with the requirements of the tax legislation of the country in which it operates.
Legal status: LLC is a legal entity with its own rights and obligations, except those prohibited or limited by law. A limited liability company is one of the most common forms of business because of its simplicity in creation and management.
But there are cases when a redemption of LLC, namely in the case of its liquidation, when the company ceases its activities. A sale in this context usually takes place by transferring the company's assets, including property, rights, debts, etc., to a new owner. The buyout of an LLC or the business sale involves the purchase of shares (parts) or ownership shares of the company by one or more participants. Here are the main steps of this procedure:
Conclusion of the agreement: The owners of the company (participants) and the person (persons) who wish to buy back a certain share enter into an agreement on the purchase of shares or shares.
Determination of price: The parties shall determine the purchase price, which may be based on the valuation of the company, market conditions, or any other agreed criteria.
Preparation of documents: Necessary documents are created, such as an agreement on the purchase of shares or shares, a deed of acceptance and transfer, decisions of the company's management bodies, etc.
Registration of changes: Changes in the authorized capital and other documents of the company are registered in the state registration authorities.
Payment execution: The buyer makes payment for the purchased share or shares in accordance with the established procedure.
Notification of shareholders or participants: Other participants of the company (if any) must be informed about changes in the composition of owners.
Update of the articles of association: After the redemption of shares or shares, the articles of association of the company must be updated taking into account the changes.
Completion of the procedure: After completing all the necessary steps, the redemption procedure is considered complete.
It is advisable to get advice from a lawyer or an attorney in order to comply with all legal requirements and avoid possible misunderstandings or disputes between the parties during the process of closing the company or sale of the company.
