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dkennedy, Attorney
Category: Business Law
Satisfied Customers: 6009
Experience:  JD degree, business owner
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Question regarding a washington state LLC. I am a member

Customer Question

Question regarding a washington state LLC.

I am a member of a WA LLC. I was given 10% interest because i intially found the beginning of the company. I was not required to work as an owner gecause i invested. Them some things were falling through and i need to help organize and get our sample line of our product ready. Of course paying for most of the supplies. Then I was bumped up to 11%

I have my own LLC. Can I transfer my 11% shares to my own LLC. Transfer them from my name to my company's name?

One of the other owner's who had 10% wants. To transfer or sell his interest. He has not invested any money, but has worked when the controlling owner gave him something to do. There was a dispute between the two and the controlling interest fired tge othe 10% person. I don't believe that can happening.

What is majority votes in an LLC? Number of votes or number of shares?

Thank you
Submitted: 4 years ago.
Category: Business Law
Expert:  dkennedy replied 4 years ago.

dklawyer :


dklawyer :

Maybe I am confused, but you are asking if you can transfer your 11% of one LLC to 11% ownership in another LLC? That would be like asking if I could take my shares of Microsoft and transfer them so that i now owned shares in Ford instead. The answer, of coruse, is no. An LLC is an entity all to itself just like IBM, Ford, or Phillips. Your LLC might be small, but legally, you cannot just pretend it is a bunch of people who got together.

dklawyer :

As for what is the majority vote--whatever the bylaws say. There should be very detailed and deliberate written bylaws which operate the company and tell who gets what, who does what, what to do if this happens, what to do if that happens, etc. etc. If you don't have any by laws, you have a mess on your hands. So, in that case, your directors, or managers (hope you have those) need to get together and come up with something to determine these very important things on running the business.

JACUSTOMER-qhfszvso- : Ok. If the shares Are in my name then i can't transfer them to my LLC that i have set up fir all my assets to be placed in for as a trust for my children?
JACUSTOMER-qhfszvso- : How can I put that membership percentage on to my own LLC? Can I sell it to my LLC? Can I transfer it to one of my children?
dklawyer :

What do the bylaws say? You can put those share into a trust for your children or whatever, but they are part of the one company. You cannot just make them shares of another company.

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