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.
A North Carolina Buy Sell or Stock Purchase Agreement between Individual Members Covering Membership Units in a Limited Liability Company (LLC) is a legal document that outlines the terms and conditions of buying or selling membership units within an LLC. This agreement provides a framework for the smooth and fair transfer of ownership interests, ensuring the rights and obligations of all parties involved are protected. One specific type of North Carolina Buy Sell or Stock Purchase Agreement is one that includes an option to fund the purchase through life insurance. This arrangement allows for the use of life insurance proceeds to finance the purchase of membership units upon the death of a member. This option can offer a practical solution for ensuring the financial stability of the LLC while providing a smooth transition in ownership. Key components and relevant keywords for a North Carolina Buy Sell or Stock Purchase Agreement between Individual Members Covering Membership Units in an LLC with an Option to Fund the Purchase through Life Insurance may include: 1. Agreement Parties: Clearly identifying the individual members involved in the agreement. 2. Membership Units: Describing the specific units being bought or sold within the LLC. 3. Purchase Price: Stating the agreed-upon price for the membership units in monetary terms. 4. Payment Terms: Outlining the payment terms, including any financing options such as life insurance. 5. Life Insurance Provision: Detailing the option to fund the purchase through life insurance proceeds. 6. Insurance Policy: Specifying the requirements and conditions for the life insurance policy, including naming the LLC as a beneficiary. 7. Death of a Member: Defining the process and obligations in the event of a member's death. 8. Right of First Refusal: Determining whether existing members have the first opportunity to purchase the units before an outsider. 9. Valuation Method: Establishing the method for determining the value of the membership units at the time of the purchase. 10. Dispute Resolution: Outlining the process for resolving any disputes that may arise regarding the agreement. It is important to consult with a qualified attorney experienced in North Carolina business and LLC laws to ensure the agreement complies with the state's regulations and addresses the specific needs of the LLC and its members.A North Carolina Buy Sell or Stock Purchase Agreement between Individual Members Covering Membership Units in a Limited Liability Company (LLC) is a legal document that outlines the terms and conditions of buying or selling membership units within an LLC. This agreement provides a framework for the smooth and fair transfer of ownership interests, ensuring the rights and obligations of all parties involved are protected. One specific type of North Carolina Buy Sell or Stock Purchase Agreement is one that includes an option to fund the purchase through life insurance. This arrangement allows for the use of life insurance proceeds to finance the purchase of membership units upon the death of a member. This option can offer a practical solution for ensuring the financial stability of the LLC while providing a smooth transition in ownership. Key components and relevant keywords for a North Carolina Buy Sell or Stock Purchase Agreement between Individual Members Covering Membership Units in an LLC with an Option to Fund the Purchase through Life Insurance may include: 1. Agreement Parties: Clearly identifying the individual members involved in the agreement. 2. Membership Units: Describing the specific units being bought or sold within the LLC. 3. Purchase Price: Stating the agreed-upon price for the membership units in monetary terms. 4. Payment Terms: Outlining the payment terms, including any financing options such as life insurance. 5. Life Insurance Provision: Detailing the option to fund the purchase through life insurance proceeds. 6. Insurance Policy: Specifying the requirements and conditions for the life insurance policy, including naming the LLC as a beneficiary. 7. Death of a Member: Defining the process and obligations in the event of a member's death. 8. Right of First Refusal: Determining whether existing members have the first opportunity to purchase the units before an outsider. 9. Valuation Method: Establishing the method for determining the value of the membership units at the time of the purchase. 10. Dispute Resolution: Outlining the process for resolving any disputes that may arise regarding the agreement. It is important to consult with a qualified attorney experienced in North Carolina business and LLC laws to ensure the agreement complies with the state's regulations and addresses the specific needs of the LLC and its members.
