If an LLC member wishes to transfer their ownership rights to a different entity for any reason, they'll need to submit an Assignment of LLC Interest. This document will be a way for the member to communicate this intention to other LLC members.
You can use an Assignment of LLC Interest in situations where an LLC member wishes to secure a loan, settle a debt, or leave their LLC.
In such cases, this document will serve to transfer the member's interest – which can be done wholly or partially – according to state laws and the governing documents of the LLC in question.
Since the document's content takes precedence over the title, an Assignment of LLC Interest doesn't necessarily have to bear that name. It's also called:
LLC members may decide to assign their interest for several reasons. One of the more common reasons for assignment is providing collateral for a loan.
Another reason might be if the member needs to settle a debt, in which case the assignment remains effective while the debt is present.
Finally, a member can assign interest to their legal heirs. In this case, the assignment becomes valid upon the member's death.
Create your own documents by simply answering our easy-to-understand questionnaire to get exactly what you need out of your Assignment of LLC Interest.
Laws vary by location. Each document on 360 Legal Forms is customized for your state.
All you need to do is fill out a simple questionnaire, print it, and sign. No printer? No worries. You and other parties can even sign online.
An Assignment of LLC Interest should clearly outline the rights and limitations as they apply both to the assignor, i.e., the LLC member transferring interest, and the assignee, i.e., the party receiving interest. For this reason, the document should be detailed and carefully crafted. State laws can potentially restrict assignments, and documents contrary to those laws can be subject to invalidation.
Let 360 Legal Forms help with our extensive library of attorney-vetted legal forms. The process is fast and easy. All you need to do is fill out our easy-to-understand questionnaire. Once complete, simply download your form as a PDF or Word document from your secure online account.
To create your document, please provide:
An Assignment of LLC Interest is a legally binding document, which means all parties should ensure they understand and agree to all terms within it before signing.
Once the Assignor and Assignee confirm that all information in the document is correct, both parties will need to sign the document to make it valid.
An Assignment of LLC Interest defines the scope of interest an LLC member will transfer to another party for other members of the LLC.
After signing the document, you will execute the interest transfer. Both parties should keep their copies of this document for the record.
Our exhaustive library of documents covers your personal, business, and real estate needs with all of your DIY legal forms.
Create professional documents for thousands of purposes.
Make unlimited documents and revisions. Sign online in seconds.
Our documents are vetted by lawyers and are applicable to all 50 states.