Assignment of LLC Interest

If an LLC member wishes to transfer their ownership rights to a different entity for any reason, they'll need to submit an Assignment of LLC Interest. This document will be a way for the member to communicate this intention to other LLC members.

What Is an Assignment of LLC Interest?

You can use an Assignment of LLC Interest in situations where an LLC member wishes to secure a loan, settle a debt, or leave their LLC. 

In such cases, this document will serve to transfer the member's interest – which can be done wholly or partially – according to state laws and the governing documents of the LLC in question.

Other Names for Assignment of LLC Interest

Since the document's content takes precedence over the title, an Assignment of LLC Interest doesn't necessarily have to bear that name. It's also called:

• Assignment Agreement
• Transfer Agreement
• Interest Transfer Agreement

Who Needs an Assignment of LLC Interest?

LLC members may decide to assign their interest for several reasons. One of the more common reasons for assignment is providing collateral for a loan.

Another reason might be if the member needs to settle a debt, in which case the assignment remains effective while the debt is present.

Finally, a member can assign interest to their legal heirs. In this case, the assignment becomes valid upon the member's death.

Why Use Swyft Forms for Your Assignment of LLC Interest?

Customized for you, by you

Create your own documents by simply answering our easy-to-understand questionnaire to get exactly what you need out of your Assignment of LLC Interest.

Specific to your jurisdiction

Laws vary by location. Each document on Swyft Forms is customized for your state.

How to Create an Assignment of LLC Interest With Swyft Forms

An Assignment of LLC Interest should clearly outline the rights and limitations as they apply both to the assignor, i.e., the LLC member transferring interest, and the assignee, i.e., the party receiving interest. For this reason, the document should be detailed and carefully crafted. State laws can potentially restrict assignments, and documents contrary to those laws can be subject to invalidation.

Let Swyft Forms help with our extensive library of attorney-vetted legal forms. The process is fast and easy. All you need to do is fill out our easy-to-understand questionnaire. Once complete, simply download your form as a PDF or Word document from your secure online account.

What Information Will I Need to Create My Assignment of LLC Interest?

To create your document, please provide:

• Assignor Information: Details on the LLC member transferring interest 
• Assignee Information: Details on the entity receiving interest
• Assignment Type: Description of whether the assignment is partial or full 
• Type of Partial Assignment (If Applicable): Determining whether the assignor will transfer a portion of ownership or specific rights and responsibilities
• Signatures: All involved parties need to sign the document to make it legally binding 

Assignment of LLC Interest Terms

• Assignor: The LLC member assigning their rights, responsibilities, and interest
• Assignee: The individual or other entity receiving the rights, obligations, and interest from the Assignor
• Authority: A confirmation that the agreement is following regulations affecting all parties (Assignor and Assignee)
• Severability: If you can't execute any individual part of the agreement, the rest of the agreement will remain valid

Assignment of LLC Interest Signing Requirements

An Assignment of LLC Interest is a legally binding document, which means all parties should ensure they understand and agree to all terms within it before signing. 

Once the Assignor and Assignee confirm that all information in the document is correct, both parties will need to sign the document to make it valid.

What to Do With Your Assignment of LLC Interest?

An Assignment of LLC Interest defines the scope of interest an LLC member will transfer to another party for other members of the LLC. 

After signing the document, you will execute the interest transfer. Both parties should keep their copies of this document for the record.