All owners, or members, of a limited liability company have a percentage of ownership of the business, referred to as interest.
A limited liability company is owned and run by its members, and it operates according to the terms of its operating agreement and state law.
An LLC is not typically structured in such a way that it's easy to add members, but it can be done.
The items needed typically include your name, the LLC's name, the name of the recipient and the percentage of interest being transferred.
If you're transferring all your interest, state it in the transfer document. Make a copy for your records, the recipient and the LLC.
(b) The operating agreement may provide that a member's interest may be evidenced by a certificate issued by the limited liability company and may also provide for the assignment or transfer of any of the interest represented by such a certificate.
A member's interest may be a certificated security or an uncertificated security within the meaning of section 8--102 of the uniform commercial code if the requirements of section 8--103(c) are met, and if the requirements are not met such interest shall, for purposes of the uniform commercial code, be deemed to be a general intangible asset.
(a) A limited liability company interest is assignable in whole or in part except as provided in the operating agreement.
The assignee of a member's limited liability company interest shall have no right to participate in the management of the business and affairs of a limited liability company except: (1) upon the approval of all of the members of the limited liability company other than the member assigning the limited liability company interest; or (2) upon compliance with any procedure provided for in a written operating agreement.
In some instances, the law allows the transfer of the ownership interest, but the transaction strips the new person of any right to participate in running the LLC.
He has the right only to his proportionate share of profits or losses.