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Plated by this Agreement (the Closing ) shall take place on July , 2015 (the Closing Date ). The parties hereto shall not be required to attend the Closing in person. 1.5 Investor Member s Deliveries. Investor Member shall deliver to Purchaser an assignment of Investor Member s Interest substantially in the form of Exhibit A attached hereto (the Member Interest Assignment ) for execution by Purchaser, duly executed by or on behalf of Investor Member, and any other documentat.

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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. Ownership in an LLC can be expressed by percentage ownership interest or membership units.

Summary. When a taxpayer sells an LLC interest, the taxpayer will usually have a capital gain or loss on the sale of the interest. However, capital gain or loss treatment does not apply to the sale of every LLC interest.

After the terms of sale are negotiated, a written membership interest sales agreement can be created to record the transaction. This agreement should detail the new member's ownership percentage, the amount of the buy-in, and require that the new member agree to be bound by the existing Operating Agreement of the LLC.

All LLC members will be named parties under a buy/sell agreement, which is a legal document. The member who wants out of the LLC sells his or her ownership interests to the remaining members who then split that portion amongst themselves.

A “MIPA” is a “Membership Interest Purchase Agreement.” A MIPA is used by a member of an LLC to sell all or a portion of his or her membership interest in the LLC to another party. The key terms in a MIPA include the purchase price, instructions for closing, and representations and warranties for each party.

Purchase Agreement Date means the date of the closing of the transactions contemplated by the Purchase Agreement, or the date of termination of such Purchase Agreement.

A transfer of an LLC interest where compensation is being paid is treated as a sale or exchange. The selling member will usually have a taxable gain or loss on the sale.

Like shares of stock of a corporation, a membership interest is a capital asset and, generally speaking, gain upon the sale of a membership interest will be taxable at capital gains tax rates if the interest was held for a period of more than one year prior to sale.

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© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232
Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
Industries
Forms in Spanish
Localized Forms
State-specific Forms
Forms Kit
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232