Illinois Buy Sell or Stock Purchase Agreement between Individual Members Covering Membership Units in a Limited Liability Company - LLC - with an Option to Fund the Purchase through Life Insurance

State:
Multi-State
Control #:
US-03467BG
Format:
Word; 
Rich Text
Instant download

Description

In the absence of a valid restriction, a member in an LLC may transfer his/her interest in the LLC (usually expressed in membership units) to anyone. Restrictions on the transfer of membership units are valid if they are not unreasonable. This form provides that the LLC has the right to purchase a members membership units upon his death. The LLC can fund this transaction through a life insurance policy on the members life with the proceeds going to the LLC. The proceeds will then be used to buy the deceased members membership units.


A restriction on the right to transfer membership units is not effective against a purchaser of the unit unless the purchaser knows of the restriction. Such a restriction can be conspicuously noted on the membership certificates.


This form is set up as a Buy Sell Agreement between the LLC and a key member. It applies in the case of the death, disability, retirement or offer of member to sell his membership units during his lifetime.


This form is a generic example that may be referred to when preparing such a form for your particular state. It is for illustrative purposes only. Local laws should be consulted to determine any specific requirements for such a form in a particular jurisdiction.

Free preview
  • Preview Buy Sell or Stock Purchase Agreement between Individual Members Covering Membership Units in a Limited Liability Company - LLC - with an Option to Fund the Purchase through Life Insurance
  • Preview Buy Sell or Stock Purchase Agreement between Individual Members Covering Membership Units in a Limited Liability Company - LLC - with an Option to Fund the Purchase through Life Insurance
  • Preview Buy Sell or Stock Purchase Agreement between Individual Members Covering Membership Units in a Limited Liability Company - LLC - with an Option to Fund the Purchase through Life Insurance
  • Preview Buy Sell or Stock Purchase Agreement between Individual Members Covering Membership Units in a Limited Liability Company - LLC - with an Option to Fund the Purchase through Life Insurance
  • Preview Buy Sell or Stock Purchase Agreement between Individual Members Covering Membership Units in a Limited Liability Company - LLC - with an Option to Fund the Purchase through Life Insurance
  • Preview Buy Sell or Stock Purchase Agreement between Individual Members Covering Membership Units in a Limited Liability Company - LLC - with an Option to Fund the Purchase through Life Insurance
  • Preview Buy Sell or Stock Purchase Agreement between Individual Members Covering Membership Units in a Limited Liability Company - LLC - with an Option to Fund the Purchase through Life Insurance
  • Preview Buy Sell or Stock Purchase Agreement between Individual Members Covering Membership Units in a Limited Liability Company - LLC - with an Option to Fund the Purchase through Life Insurance
  • Preview Buy Sell or Stock Purchase Agreement between Individual Members Covering Membership Units in a Limited Liability Company - LLC - with an Option to Fund the Purchase through Life Insurance

How to fill out Buy Sell Or Stock Purchase Agreement Between Individual Members Covering Membership Units In A Limited Liability Company - LLC - With An Option To Fund The Purchase Through Life Insurance?

You are able to invest hours online trying to find the authorized papers template that meets the federal and state demands you require. US Legal Forms offers a large number of authorized kinds which are examined by professionals. It is simple to down load or printing the Illinois Buy Sell or Stock Purchase Agreement between Individual Members Covering Membership Units in a Limited Liability Company - LLC - with an Option to Fund the Purchase through Life Insurance from our services.

If you currently have a US Legal Forms bank account, it is possible to log in and click on the Obtain button. Following that, it is possible to full, modify, printing, or indicator the Illinois Buy Sell or Stock Purchase Agreement between Individual Members Covering Membership Units in a Limited Liability Company - LLC - with an Option to Fund the Purchase through Life Insurance. Every single authorized papers template you buy is yours forever. To obtain one more copy of the obtained kind, check out the My Forms tab and click on the related button.

If you use the US Legal Forms website the first time, stick to the straightforward instructions below:

  • Initially, be sure that you have chosen the proper papers template to the state/metropolis of your choice. Look at the kind information to make sure you have picked the proper kind. If available, take advantage of the Review button to search throughout the papers template as well.
  • If you want to locate one more version from the kind, take advantage of the Lookup discipline to discover the template that suits you and demands.
  • When you have identified the template you want, click Acquire now to proceed.
  • Find the costs program you want, type in your credentials, and register for an account on US Legal Forms.
  • Total the deal. You may use your bank card or PayPal bank account to fund the authorized kind.
  • Find the formatting from the papers and down load it in your product.
  • Make alterations in your papers if required. You are able to full, modify and indicator and printing Illinois Buy Sell or Stock Purchase Agreement between Individual Members Covering Membership Units in a Limited Liability Company - LLC - with an Option to Fund the Purchase through Life Insurance.

Obtain and printing a large number of papers layouts making use of the US Legal Forms web site, which offers the most important selection of authorized kinds. Use professional and status-distinct layouts to deal with your small business or specific requires.

Form popularity

FAQ

A membership interest purchase agreement, sometimes called a MIPA, is a contract between a seller and a buyer to transfer the ownership of an LLC. A MIPA transfers the whole company with all of its assets and liabilities being transferred by the contract.

Disadvantages: (1) The fixed price becomes outdated due the constant evolution of a business; (2) Owners seldom know the true value of a business and set unrealistic prices; and (3) Different triggering events may cause different values (i.e., death of an owner, retirement of an owner, removal of an owner, etc.).

Here is how buy-sell agreements work: Determine which events invoke a triggered buyout. Establish who has rights and purchase obligations. Identify the names and address of the purchasers. Set a purchase price or valuation with applicable discounts. Establish payment terms as well as their intervals.

For example, three doctors could form a joint practice, and the doctors can agree to a buyout agreement where all remaining doctors can buy a doctor's ownership for $1,000,000 upon retirement.

Here is how buy-sell agreements work: Determine which events invoke a triggered buyout. Establish who has rights and purchase obligations. Identify the names and address of the purchasers. Set a purchase price or valuation with applicable discounts. Establish payment terms as well as their intervals.

3 Main Types of Buy-Sell Agreements 1) The entity-purchase agreement. 2) Cross-purchase agreement. 3) The wait-and-see agreement.

As part of the agreement, the business buys life insurance policies on the lives of each owner. The business pays the premiums and therefore exists as the owner and beneficiary of the policy. When an employee-owner dies, that share of the company passes to the heirs of his or her estate.

A life insurance buy-sell agreement requires the business owners to carry life insurance that benefits each other or the business, so that the proceeds of the life insurance policy will be available to pay for the deceased member's ownership interest.

Trusted and secure by over 3 million people of the world’s leading companies

Illinois Buy Sell or Stock Purchase Agreement between Individual Members Covering Membership Units in a Limited Liability Company - LLC - with an Option to Fund the Purchase through Life Insurance