This point also emphasis the importance of having an operating agreement. That being said, as long as your contract, or operating agreement, doesn’t violate the law or contravene the statute, there is great flexibility in how you structure the entity. This is because in essence, the LLC is a contract between the members (the owners) and the newly created entity itself. Together, both of these interests make up your LLC interest, and they can most certainly be modified depending on the language you put in your operating agreement. books and records) and that other than your transferable interest. The nontransferable interest includes your right to vote, obtain information (i.e. The transferable interest is your economic right to receive distributions and share in the profits of the LLC. Transferable Interest and Nontransferable Interest Uncommon to most, your ownership in the LLC is actually split up into two parts: (1) transferable interest and (2) nontransferable interest. The nature of this interest is determined by contract - the LLC operating agreement - or by statute. LLC ownership is evidenced by an LLC interest.
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