Florida LLC’s can now prevent members from withdrawing

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The new Florida LLC Act was revised this year so that a Florida LLC’s operating agreement can prohibit a member from withdrawing from the company. Withdrawal can allow a member to terminate his or her obligations as a member, which could include obligations to make capital contributions or not compete with the company’s business. Florida LLCs should consider adding a provision to their operating agreements prohibiting withdrawal of a member.

 

 

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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