What happens in a partnership when one partner wants out? Do the others have first choice to buy and/or do the others have the right to approve the new partner? How do you guys handle those issues?
Lynn:
In our group, if a partner wants to sell or dies, the LLC (remaining partners) has first refusal on the available share. I think this approach is fairly standard. Re new partners, it is not so much an approval as the absence of disapproval -- that is does anyone have good reason to not take in a specific new partner for such reasons as he/she being a student or low-time pilot who would bring a substantial increase in insurance premiums, citations for violations of FARs, citations for alcohol-related DUIs or drug use, poor credit ratings, etc. There should be communication between partners and each should make their opinions known to the others. Many partnership disagreements can be traced to non-existent or poor communication among the partners.
Don
