IN THE EVENT OF A BUY-OUT, HOW WILL PAYMENT BE MADE?
If a member’s membership interest in a limited liability company will b purchased, the operating agreement you may prepare using this website allows for payment of the purchase price in one of two ways: 1) a cash payment, or 2) a payment of 20% down, with the remainder to be a loan. While the loan is assumed to be paid on a monthly basis, you must select an interest rate and the number of months required to pay back the loan. Remember, the repayment term is in months, so if you decide upon a repayment of 5 years, you must enter “60” where prompted (because 60 months = 5 years).
