A LLC sales contract is a legally binding contract that allows a company to transfer to another entity, through a formal transaction, the ownership of an LLC or the interests of the members of an LLC. If you do not have an enterprise agreement or if members are unable to agree on provisions, you may need to file a petition with your state`s civil court for a judge to set a price for your membership interest. If the enterprise agreement is out of date, prepare a new agreement reflecting the new ownership and sign it, or add an amendment to the enterprise agreement that appoints new members. Depending on your status, you may not have to submit a transfer of ownership, but you may need to list all current members in the annual report you make available to the state. It is in your best interest to include a buy-sell commission in your LLC`s operating contract inspired by good foresight. A buy-sell provision in an operating contract is essential to the smooth transfer of ownership of LLC. If you want to sell your entire business or need a sales contract, you should consult a lawyer. Do some research before you buy an LLC subscription. Do a credit check and consult the Secretary of State. It`s worth spending a few thousand dollars on legal fees to find out what you`re getting into. Document everything. You`ll find ownership transfer models online.
If your LLC does not have an operating contract or a sales contract, your state`s laws determine how and if you can transfer affiliate interest. You may be able to negotiate a sales contract with your buyer or obtain a written ownership transfer agreement. If your state or business agreement does not authorize transfers of ownership, you may need to dissolve the business. After the dissolution of the LLC, other LLC members who wish to continue may create another LLC. Depending on your LLC`s state of origin law, you can either provide a copy of the sales contract between you and the other party or request a purchase. The process for transferring LLC membership depends on your state. It also depends on whether you sell the entire business or simply change the name and percentages of the property. You can change the percentage of property z.B if you accept a new member or buy an outgoing member (the owners of an LLC are called “members”).
Each member is entitled to a percentage of the company called “affiliate interest.” If it is necessary to change the percentage of ownership or to welcome new members, some of the membership interest must be transferred to the LLC. Since the transfer of ownership of an LLC has a long-term impact on your business, we strongly advise you to consult a lawyer and review your business agreement to meet the growing requirements of your LLC.