Key Steps to Selling a Percentage of Your LLC
- Review the operating agreement
- Determine company value
- Find potential new members
- Negotiate sale
- Draft purchase agreements
- Update operating agreement
- Create capital account
- File paperwork with state
Understanding LLC Ownership Percentage and Selling Interests
LLC ownership percentage is usually determined by equity contributed. Contribution doesn’t have to be financial; it can be time, ideas, services, or experience too. Bigger your percentage, more weight your votes have. With LLC percentage, flexibility; however the total must be 100%.
Record Keeping and Transfer of LLC Interests
How do I record a sale of LLC interest? To transfer membership interest: Look over the operating agreement. If it doesn’t cover transfers, consult professionals. Generally, partnership basis isn’t affected by transfers. LLC interest transfers done through an assignment document.
In LLCs, flexibility and liability protection are often favored. Central to an LLC is its operating agreement shaping operations. Defining concepts and adding provisions promote clarity.