When a member of an LLC (a limited liability company) wants to sell their interest, or a part of it, to another party, this LLC Membership Purchase Agreement can be used.
When a member of an LLC (a limited liability company) wants to sell their interest, or a part of it, to another party, this LLC Membership Purchase Agreement can be used. Usually, the need to dispose of the interest happens when the member of the LLC is leaving or has been forcibly removed from the LLC.
This way, in any situation where the relinquishment of the interest in the LLC is exchanged with money, LLC Membership Purchase Agreements can be used.
Most often, an LLC Membership Purchase Agreement happens typically after the LLC has already been operating. If you want to establish a limited liability company in most states, you must first begin with Articles of Organization (it is also known as Certificates of Formation). (ideti linka). Meanwhile, when one of the company's members wishes to sell some of their interest, they can use this document.
The agreement is quite straightforward and easy to fill, as it contains all the details needed to sell the interest in an LLC. The document covers both parties of the agreement - the seller and the buyer.
Note that the document differs from an LLC Membership Interest Assignment, as in the latter, only the assignment of the interest goes to another party with no additional terms. However, these two documents can be used in conjuncture with one another.
You fill out a form. The document is created before your eyes as you respond to the questions.
At the end, you receive it in Word and PDF formats. You can modify it and reuse it.
When any party wishes to sell their membership interest in an LLC, they can use this document. After finishing the document, we recommend keeping it on file with the LLC.
Firstly, the person filing the document will have to enter identifying information of the parties, the amount of interest the seller owns and wants to sell, as well as the sale price, and details of how that price will be paid. Later on, the filing person will have to fill down the information of the closing details - the time when will the buyer and the seller meet to finalize the sale.
It is also possible to put down information about the addendum, in case full consent is required from all the members of the LLC to validate the sale.
Note that this document requires both signatures after it is completed - the first party that is the party purchasing the interest, and the second that is the one selling it.
Individual state laws govern LLC Membership Purchase Agreements. No federal laws cover these documents, as each individual state regulates the businesses formed within that state.