A limited liability company (LLC) is a separate legal entity that can conduct business just like a corporation with many of the advantages of a partnership. It is taxed as a partnership. Its owners are called members and receive income from the LLC just as a partner would. Management of an LLC is vested in its members. An operating agreement is executed by the members and operates much the same way a partnership agreement operates. Profits and losses are shared according to the terms of the operating agreement.
A membership interest may be used to refer to the ownership interest of a member in the LLC. The word unit is often used to reflect the membership interests of a member in the LLC. Some LLC's issue membership interest certificates. To become a new member of the LLC the consent of majority of the members is necessary. A transfer of units of an existing member does not automatically include membership into the LLC.
Arizona Sale and Assignment of a Majority Ownership Interest in a Limited Liability Company Pursuant to an Installment Sales Agreement and Retaining a Security Interest in the Membership Interest Being Sold and Assigned Until Paid: — Sale and Assignment of an Arizona LLC Ownership Interest: This refers to the transfer of a majority ownership interest in a limited liability company (LLC) located in Arizona. It involves the sale and assignment of the ownership interest to a new party. — Installment Sales Agreement: It is an agreement where the purchase price for the ownership interest is paid in installments over a specific period. This allows the buyer to make payments in regular intervals rather than paying the entire amount upfront. — Security Interest in the Membership Interest: The seller retains a security interest, which serves as collateral, in the membership interest being sold. This means that if the buyer defaults on the installment payments, the seller has the right to regain ownership of the membership interest. — Retention of Security Interest Until Paid: The seller retains the security interest until the buyer has fully paid for the membership interest. This ensures financial protection for the seller and provides an incentive for the buyer to make timely payments. — Different Types of Arizona Sale and Assignment: While the main focus is on the sale and assignment of a majority ownership interest in an Arizona LLC, variations could include the sale of a minority ownership interest or the sale and assignment of a different percentage of ownership. — Additional Conditions and Terms: The detailed description of the transaction may also include any specific terms and conditions agreed upon by both parties, such as restrictions on the use or transfer of the membership interest or any warranties provided by the seller. Keywords: Arizona, sale, assignment, majority ownership interest, limited liability company, installment sales agreement, security interest, membership interest, collateral, retention, paid, variations, conditions, terms.
