LLCs in Alabama: Issuing, Dividing, and Transferring Member Interests
Live Webinar: Wednesday, November 8, 2017
2:00 p.m. to 3:00 p.m.
WEBINAR SNAPSHOT: Learn how to properly issue, divide or transfer member interests in LLCs in Alabama.
For an Alabama transactional lawyer, few transactions are more commonplace than the sale of LLC interests. But the tax consequences of even some of the most routine of these sales can be stranger than you would expect. While complexity of the tax aspects is no reason to shun LLCs, you must beware of the bewildering rules.
What mistakes frequently happen? What steps do you need to take? And what tax consequences may be involved?
Under Alabama’s Revised LLC Act, which became applicable to all LLCs as of January 1, what a member conveys is determined by statutory default rules in the absence of a contrary agreement. Under the default rules, a transfer by a member only transfers a member’s transferable interests – the right to distributions. The transferor remains a member of the LLC after the transfer of his or her transferable interest because the transferor member still retains rights of a member other than the financial rights to distributions.
Restrictions on transfers in a LLC agreement include the right of first refusal, the right of first offer, the tag-along rights (for the benefit of minority members), and the drag-along rights (for the benefit of majority members to force other members to participate in the sale).
If your law practice involves LLCs in Alabama, spend just one hour participating in this valuable CLE webinar.
- What to do when one of the members dies or retires
- Gifting ownership interests in a LLC
- Withdrawal/transferring of membership
- Negotiating price of ownership interest—mistakes to avoid
Earn CLE as you learn about the best way to manage tax and other aspects of LLC transactions in Alabama.
About Your Presenter:
The Corrigan Law Firm PC
Richard Corrigan is the sole shareholder of The Corrigan Law Firm PC, in Mobile, where he practices in the areas of entity formation and business and commercial litigation. He earned his B.A. degree from the University of Virginia and his J.D. degree from the University of Alabama School of Law. Mr. Corrigan is a member of the Mobile and American bar associations, and the Alabama State Bar, as well as the Mobile Area Chamber of Commerce.