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LLC membership units refer to a form of membership interests issued to a person or entity that made a capital contribution to a limited liability company (LLC). These units represent the party's ownership stake in the company.
Each member of your LLC makes a capital contribution in exchange for a certain number of membership units or percentage of ownership interest in the company. Your LLC is allowed to issue any number of membership units. Records of each member's membership interest are maintained in a membership transfer ledger.
A membership interest certificate also referred to as an LLC membership certificate, is a document that designates a specific unit of interest or ownership a member has in an LLC. Membership certificates aren't required for all LLCs, but they can be beneficial for LLCs with outside investors or several owners.
Membership certificates are documents LLCs use to note individual members' ownership in the company (much like how a corporation issues stock certificates to shareholders).
Member Certificates tend to include the following information:Issue date.Certificate number.Member name.Company name.Date and state of the LLC's formation.The member's investment.Membership interests, including the percentage of interest in the business.Number of members.More items...