What is the best way to buy out the shares of a withdrawing
member. We would rather do this than sell any of our stock.
Any advice would be great!

You don't "buy out" the shares of a withdrawing member. If the remaining members want to contribute more money, they can do so. Generally, the best way to pay off a withdrawing member is by transferring shares of appreciated stock to them. The member defers capital gains until s/he decides to sell the shares. The remaining members in the club defer their respective shares of the unrealized capital gains until the date the date in the future when they each withdraw from the club.

 

Ira Smilovitz