fair market value as per LLC

[hollis]

What is the name of your state? NY

My Lawyer who is pretty good at most things seems to be confused as to the term Fair Market Value as its outlined by my LLC operating agreememt.
In it it states: ......For purposes hereof, the fair market value shall be the "book value" of the company as then determined by its accountant or other individual who prepares its income tax returns, using generally accepted accounting principals.......I've had the lawyer that is representing the estate of my deceased partner say "we have to get a new appraisal and determin the new fair market value." However two accountants say that the BOOK value will be the purchase price plus any improvements. (seems like my LLC lawyer also are saying this, and aying thats the good thing about an LLC death transfer ) My lawyer seems to be non plused. Anyone here ever have to deal with this?

 

[HomeGuru]

What is the name of your state? NY

My Lawyer who is pretty good at most things seems to be confused as to the term Fair Market Value as its outlined by my LLC operating agreememt.
In it it states: ......For purposes hereof, the fair market value shall be the "book value" of the company as then determined by its accountant or other individual who prepares its income tax returns, using generally accepted accounting principals.......I've had the lawyer that is representing the estate of my deceased partner say "we have to get a new appraisal and determin the new fair market value." However two accountants say that the BOOK value will be the purchase price plus any improvements. (seems like my LLC lawyer also are saying this, and aying thats the good thing about an LLC death transfer ) My lawyer seems to be non plused. Anyone here ever have to deal with this?

**A: confusing post. Fair market value is determined by comps and has nothing to do with the entity structure such as an LLC or corporation. Yours is not a real estate question but a contractual question pertaining to the LLC agreement.