LLC Membership Interests As Collateral
LexisNexis (June 11, 2018, 1:20 PM EDT) -- How does a lender perfect a security interest in a borrower's ownership interest in a limited liability company? Businesses today are often organized as limited liability companies, or LLCs as they are commonly known. LLCs offer the limited-liability protection of a corporation with the pass-through tax advantages of a partnership; however, they are much more flexible than traditional pass-through entities.
Flexibility of the entities. The holder of an ownership interest in an LLC (known as a "member" in LLC terminology) can be an individual or any...