Business Entities

LLC membership interests

LLC Membership Interests
LLC Membership Interests

Membership in an LLC comes with a bundle of financial and management interests which can be separated and parceled out among members. These classes of membership interests are similar to classes of stock in corporations

Financial interest

Financial interest refers to a member's right to receive profits of the business. Financial interests might be called economic interests.

Voting interest

Voting interest refers to a member's right to participate in management direction of the LLC.

Classes of LLC Membership Units

An LLC Operating Agreement may create classes of membership units. To illustrate:

Class A units could contain full financial and voting rights.

Class B units could include financial rights, but no voting rights.

Read more about LLC structures.

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