When a member of an LLC in Tennessee passes away, the company doesn't automatically dissolve. Here's what typically happens:
Ownership Interest: The deceased member's ownership interest in the LLC passes to their beneficiaries according to their will or intestacy laws.
Operating Agreement: If there's an operating agreement, it can override this default distribution. For instance, it might specify that surviving members must purchase the deceased member's interest.
Having a well-written operating agreement can help clarify these matters and ensure a smooth transition.