Today I am here to throw some light on LLC membership certificates. I will also discuss how you can get the templates to create such kind of certificates in an effortless manner.
Before we go ahead, it is important to understand LLC. Actually, the term LLC stands for Limited Liability Company. This is a kind of structure for a company which is quite flexible in its management style and offers limited liability protection to its every member. LLCs are extremely popular among small business owners. There are many LLC companies across the world. Some of the few such companies are Ripplewood Holdings LLC and Riverstone Holdings LLC.
Now that you have clarity about LLC companies, it is time to know about the LLC membership certificate.
LLC Membership Certificate
What is a LLC Membership Certificate
This is the certificate that an LLC company needs to establish itself as a legal entity. Owners within an LLC are known as members. An LLC can be a single member LLC or a multi-member LLC. Each member or partner of LLC receives a membership certificate which establishes his or her claim in the entity/company. It is essential that members of a limited liability company keep their membership certificates updated to avoid any problems regarding their business ownership in the near future. In short, an LLC membership certificate is proof of ownership of that member.
As if this is not enough
I will now tell you about the components that are essential to include within such a membership certificate.
Parts or components of an LLC Membership Certificate
Some of the components of an LLC Membership certificate are the following ones:
- A header which is usually ‘Membership Certificate’ or ‘Limited Liability Certificate’
- Relevant text that conveys that the person is an owner or member of the Limited Liability Company.
- The name of the LLC
- The date on which the company/entity was established
- The address of the entity
- Signature of the designated authorities
How do I get an LLC certificate
To get an LLC certificate, you have to first create an LLC and for the same, you have to first fill the LLC formation documents and then need to pay the requisite filing fee. The fee varies from state to state in the U.S.
However, setting up an LLC is not very expensive because of which people aspiring to start a business with a small capital prefers to create a limited liability company. Once you had filled the documents and paid the requested fee, there is a review process done by the Probate Judge and then are forwarded to the Secretary of State.
If they get final approval from the Secretary of State, you will be notified that your LLC is successfully formed. After this long process, you can download your LLC certificate from the online database of the state that you have selected for filling the documents. You can only download after paying a modest fee either by a credit card or a debit card.
For example, if you are setting up an LLC in the state of Alabama, you have to visit http://arc-sos.state.al.us/CGI/CORPNAME.MBR/INPUT to search your LLC certificate and download the same.
Can LLC issue stock
If you are wondering whether an LLC has the capacity to issue stock or not, it is important to know that it can’t be possible because it is not like a corporation in its structure where ownership of each member is determined by the stock each owner has.
Whenever a person buys a stock of a company operating as a corporation in its structure, he or she is entitled to get a physical stock certificate. Now, most companies issue electronic stock certificates that the stock buyer can download.
Also, I have come across many people who believe that one can sell the shares of LLC. The truth is even if you have an LLC membership certificate, you cannot sell the shares of your LLC, but yes, you can definitely sell a percentage of the LLC that you own via a complex process. If you are doing this, you have to create a membership interest purchase agreement for which you can find ready made templates here!
Can you be a member of an LLC without ownership
Yes of course! You can become a member of an LLC without having any ownership in the same as a managing member. For example, if an LLC member appoints you as a manager, you will become an LLC member without ownership.
The best thing about all this mammoth discussion and information sharing is that whether you need a membership interest purchase agreement template or a LLC membership certificate template, you can find these all under one roof! Here you can find impressive templates created by professionals which you can download for free.
Sounds unbelievable but is true. So just browse through the ready made templates and select and download as per your need. Stay tuned for more such information regarding various vital certificate templates.