An LLC, limited liability company, Withdrawal Agreement is used when a member of an LLC withdraws, willingly or not, from the LLC. LLC Agreements state the conditions of member withdrawals as well as the process involved when a member withdrawals.
An LLC is set up through an agreement between all members. When one member wishes to withdraw from the company, an LLC Withdrawal Agreement is created. These agreements are also used if the LLC wants to remove a member from the company.
When a member withdraws from an LLC, a written notice of the withdrawal intent must be submitted to the other members. It must adhere to the procedures stipulated in the original LLC Agreement signed by the member. All states have requirements and laws regarding this issue.
When a member withdraws, a withdrawal agreement is created. It states the withdrawing member’s interest in the company and what the member receives when the withdrawal is complete. The member typically receives a portion or all of his capital contribution back that the member is entitled to. It is given back to the member in the manner described in the original LLC Agreement.
Jennifer VanBaren started her professional online writing career in 2010. She taught college-level accounting, math and business classes for five years. Her writing highlights include publishing articles about music, business, gardening and home organization. She holds a Bachelor of Science in accounting and finance from St. Joseph's College in Rensselaer, Ind.