Transfer stake in company?

Discussion in 'Growing and Managing a Business' started by noobstartup, Feb 27, 2012.

  1. noobstartup

    noobstartup
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    I recently opened up an LLC with a partner. He has a small stake in the company, but now feels he cannot keep up with it. He wants to sell his percentage to me. How does one go about this? I registered by LLC using LegalZoom. What kind of legal document do we need to fill out? And who do we send it to?

    Thanks!
     
  2. Business Attorney

    Business Attorney
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    Generally you will do an assignment of the LLC membership interest. See How to Transfer a Membership Interest in an LLC.

    In many states, you don't need to notify anyone of the transfer. In my state (Illinois), if the LLC is organized as a "member-managed" LLC, then you do need to report the change of the membership to the Illinois Secretary of State. You'll need to check your own state requirements.
     
  3. Mark T

    Mark T
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    I am not sure, but the percentage I guess of what will be sold to you also matters and is considered.
     
  4. noobstartup

    noobstartup
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    I guess an assignment of membership interest form makes sense. I'll need to call the state to get more details.. They were not very helpful the last three times I called them.
     

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