What happens to an LLC if a member leaves the organization?

When a member leaves an LLC (Limited Liability Company), the standard legal design is that the LLC may be required to dissolve unless stated otherwise in its operating agreement. This is based on the default rules provided in many state laws regarding LLCs, which typically assert that the departure of a member can trigger a dissolution process unless the operating agreement contains provisions that allow the LLC to continue operating despite the member's exit. Many LLCs establish specific guidelines in their operating agreements that outline how to handle the departure of members, which may include maintaining the business without dissolution or detailing procedures for replacing the departing member. Therefore, if the operating agreement does not address this issue, the departure could lead to dissolution of the LLC. The complexity of these arrangements emphasizes the importance of having a comprehensive operating agreement that clearly defines the terms concerning member departures.