The article cited below will be of interest to many LLC lawyers, members and others. I’ve also set forth below the first paragraph of the article.
22 Transactions: Tenn. J. Bus. L. 170
Transactions: The Tennessee Journal of Business Law
Copyright © 2020 by Transactions: The Tennessee Journal of Business Law, Inc.; Issam Bahour
LLCS–VALUATION OF MEMBERSHIP INTEREST IN LIMITED LIABILITY COMPANIES
The Tennessee Court of Appeals held that, in the context of Tenn. Code Ann. § 48-249-505-506, (1) “fair value” is determined by the member’s proportionate interest in the company as a going concern, and is distinguished from “fair market value”, which consists of the price at which property would change hands between a willing buyer and a willing seller; (2) discounts for lack of control and marketability are not necessary for appraising a membership interest; and (3) tax affecting is relevant in assisting the court’s determination of the fair value of the going concern value of an S corporation. Raley v. Brinkman, No. M2018-02022-COA-R3-CV, 2020 Tenn. App. LEXIS 341 (Tenn. Ct. App. July 30, 2020).