We use cookies on this site to enable your digital experience. By continuing to use this site, you are agreeing to our cookie policy. close

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...
To view the full article, register now.