The “Transfer of Membership Interest” or “Assignment of Membership Interest” document is the instrument used to convey ownership interest in a Limited Liability Company (LLC).
The Transfer of Membership Interest Agreement is the primary document that evidences a change in ownership of your Limited Liability Company’s Membership Interest (sort of like LLC “Stock”). It is executed by the Buyer and Seller (or Assignee and Assignor) and kept as a record of the sale or assignment. This document is usually not filed with the Secretary of State or Corporation Commission, but rather retained as an internal company document. Keep in mind, simply assigning the someone your ownership interest usually doesn’t give them any management or voting rights in the company. That will require amending the LLC Operating Agreement. Also, don’t forget to check with the Secretary of State or Corporation Commission to see if they must be notified of the changes. Let us know if you have any questions about the process, we’re here to help!