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LLC Glossary

Membership Interest/Membership Unit

Membership interests are a way to express ownership in an LLC. Holders of membership interests have a voting and profit interest in the company. Membership interests may be transferred or sold to others. LegalZoom gives you the ability to choose the circumstances under which transfers of membership interests can be made. Members should consider how much input they would like to have when other members seek to sell or transfer interests versus how much input they want others to have if they seek to sell or transfer interests.