Withdrawing From A Limited Liability
Company In Michigan
If you are a member of a Michigan limited liability company (“LLC”) and want to withdraw your membership interest, you should make sure that your LLC’s operating agreement permits voluntary withdrawal of membership interest. Pursuant to MCL 450.4509, a member may withdraw from an LLC only as provided in the operating agreement. Id.
Case law in Michigan confirms that the “only as provided in the operating agreement” language of MCL 450.4509 means that a member can no longer withdraw unless the operating agreement specifically permits withdrawal. Altobelli v Hartmann, 307 Mich App 612; 861 NW2d 913 (2014), rev’d, in part vacated, 499 Mich 284; 884 NW2d 537 (2016).
Ultimately, withdrawing your membership interest in an LLC is not an absolute right. If your LLC’s operating agreement does not specifically allow you to withdraw your membership interest, you should explore other options, such as transferring your membership interest if the operating agreement permits.
If you have questions or concerns about business law or related matters, be sure to reach out to a attorney in Michigan today. The team at Tishkoff PLC is here to help. Contact us online or call our office today. Toll Free: 1 (855) TISH-LAW.