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The term member refers to the individual(s) or entity(ies) holding a membership interest in a limited liability company. The members are the owners of an LLC, like shareholders are the owners of a corporation. Members do not own the LLC's property.
If a limited partner wants to assign, gift, or sell his or her interest to another person, the interest that is received by the acquirer is generally an assignee interest, not a limited partnership interest. The rights of a limited partner are not usually transferable, only the economic benefit.
LLC Interest in Securities The owners of an LLC overseen by a manager are not involved in the day-to-day management of the company. California Law, therefore, regards them as securities, even if some members are actually involved in the day-to-day management of the company.
An LLC owner (called a member) can transfer an ownership interest (called a membership interest) by complying with the transfer provisions within the LLC's operating agreement and state law. An assignment is one of the key documents a member must prepare to officially transfer a membership interest to a transferee.
A membership interest represents a member's ownership stake in an LLC. A person who holds a membership interest has a profit and voting interest in the LLC.
Members invest money into the LLC and get a share of the company in return. Those with an ownership interest receive a share of the LLC's profits and losses.
Assignment of interest in LLCs happens when a member communicates to other members his/her intention to transfer part or all of his ownership rights in the LLC to another entity. The assignment is usually done as a means for members to provide collateral for personal loans, settle debts, or leave the LLC.
Generally, a ?stockholder? or ?shareholder? is an owner of stock or shares in a private or public corporation, while a ?member? is an owner of an interest in a limited liability company (an ?LLC?).