can an llc be sold?

by sam
(chicago)

Can an llc be sold?

Answer

Yes.

A limited liability company absolutely can be sold. A member can sell his or her membership interest, or, all the members can sell their interests to a single buyer, or all the members can agree to sell all the assets of the LLC to a buyer.

Some LLCs will place clauses in their Operating Agreement preventing members from selling their interests to outsides without first offering existing members the opportunity to purchase. This is a relatively common provision, but it is not mandatory, and your LLC could permit free exchange of membership interests.

A "membership interest" is similar to the concept of "shares" in a corporation. If you own 40% of the membership interest in an LLC, it's like owning 40% of the stock in a corporation (LLCs have many similar concepts as corporations, but different terminology).

These transfers of LLC interests involve contracts and paperwork, of course. The premium Legalzoom incorporation package includes many of the form documents needed to sell and buy LLC membership interests and record the transfer.

If you have a particularly complicated transaction, you ought to have a lawyer take a look at it. However, providing your lawyer with form documents to begin from will make his job easier, faster and likely result in a lower legal bill (sometimes substantially lower).