Membership Interest
/ˈmɛm.bɚ.ʃɪp ˈɪn.tər.ɪst/
Definitions
- (n.) A legal share or stake held by a member in an entity such as a limited liability company, evidencing rights to profits, losses, and governance.
Her membership interest entitles her to a proportionate share of the LLC's profits.
Forms
- membership interest
Related terms
See also
Commentary
Membership interest generally reflects both economic and management rights in an LLC, distinguishable from mere financial investment.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.