Close LLC

What is a close limited liability company (LLC)? The main difference between a regular LLC and a Close LLC is that there is a restriction on the selling of a member’s shares. A member must offer the shares, for sale, to the other member(s) of the LLC, before they can be sold to anyone else.  All members also must approve of the sale of shares. One can see how an LLC works well in a closely held family company, where the parents want to make sure that the children cannot sell part of the company to outsiders.

A close LLC business is not required to hold annual meetings unless requested by a member.

The Close Limited Liability Company Supplement, articles of organization, and operating agreement of a close limited liability company may also restrict the transfer of ownership interests, withdrawal or resignation from the company, return of capital contributions, and dissolution of the company.

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