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what is dissociation and dissolution of an LLC well these are related concept as one often gives rise to the other to start with this Association is simply a member which the owners of an LLC are known as members dissociation is a member leaving the LLC that is selling their ownership back to the LLC or certain other conditions whereby the owner effectively is no longer an owner with that being said what are some scenarios of dissolution well as I stated a member resigns that is they surrender their ownership interest back to the LLC or sell it to the existing members another event of dissociation might be something described in the operating agreement that is if something occurs or something happens or somebody does not do something right then that person may be ejected from the LLC a members bankruptcy generally generally results in dissociation simply because the members interest in the LLC becomes part of the bankruptcy estate which in effect is no longer owned by that member the