Buying property from 50/50 partner. How to structure buyout?

[Don B.]

Hey BP,

Long time reader/lurker. Decided I finally needed to make an account to ask a question! I own property (vacant land) 50/50 with a partner in a manager/manager LLC. Land may have development potential, may not. Either way, I'd like to have it. For investment or personal use.

If partner were agreeable to sell his half to me - how should that be structured? Form a new entity and buy it from our current one? And dissolve current LLC? Or buy his shares in our current LLC? I want to eventually have the property in a different LLC regardless. So even if I bought his share of our current - I'd eventually transfer it. Trying to think of tax / legal implications here.

Would your answer change if he agreed to seller finance his half to me? How would that work?

Appreciate it guys!