LLC Transfer Lawyer
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Who Has Ownership in a LLC?
A limited liability company (LLC) is a business organization that combines the benefits of a corporation and the tax freedom of a partnership. A LLC can be owned by one or more owners, also called members. The part of the LLC a member owns is referred to as an interest. An owner doesn’t have to maintain interest in the company. The member has a right to sell or transfer interest in the LLC.
Why Would I Transfer My LLC Interest?
Members might want to transfer their LLC interest because:
- The member wants to leave the business
- For financial purposes
- Personal reasons
Do I Have to Transfer All of My LLC Interest?
No, an owner may transfer all, part, or some of the interest to another person.
Can I Just Transfer My Interest?
No, first read the operating agreement. There’s a section that outlines the circumstances that allow a member to transfer interest and how to go about it.
What if My LLC Operating Agreement Doesn’t Have a Section Address the Transfer of Interest?
If a member can’t find the clause that outlines how to transfer LLC percentage, they should refer to state law. If there’s no mention in the agreement, then state law governs how the transfer should go.
Do I Have to Calculate Interest on My Percentage?
Yes, a member must calculate the value of the percentage. The method used should be outlined in the operating agreement or by meeting with other members to go over financial records.
Will I Need the Approval of Other Members to Complete the Transfer?
It depends on the operating agreement. Some operating agreements do require any owner to have the approval of all or a majority of members.
Do I Need to Talk to a Business Attorney about a LLC Transfer?
Yes, contact a business lawyer to go over the documents and understand your rights to transfer or sell your LLC interest.
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Last Modified: 03-17-2016 05:17 PM PDT
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