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LLC Share Purchase Agreement for the United States

LLC Share Purchase Agreement Template for United States

A legally binding agreement governed by U.S. federal and state laws that documents the sale and transfer of membership interests in a Limited Liability Company from a seller to a buyer. The agreement outlines the terms and conditions of the sale, including purchase price, representations and warranties, and closing conditions, while ensuring compliance with applicable securities laws and operating agreement provisions.

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LLC Share Purchase Agreement

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What is a LLC Share Purchase Agreement?

The LLC Share Purchase Agreement is a crucial document used when transferring ownership interests in a Limited Liability Company within the United States. It serves as the primary transaction document capturing all material terms of the sale, including price, payment terms, representations, and warranties. This agreement must comply with both federal and state securities laws, as well as any transfer restrictions in the LLC's operating agreement. It's particularly important for ensuring clean title transfer and protecting both parties' interests through proper documentation of the transaction terms and conditions.

What sections should be included in a LLC Share Purchase Agreement?

1. Parties: Identification of seller(s), buyer(s), and the LLC

2. Background: Context of the transaction and current ownership structure

3. Definitions: Key terms used throughout the agreement

4. Purchase and Sale: Core transaction terms including interests being sold and purchase price

5. Closing: Timing and mechanics of the transaction closing

6. Representations and Warranties: Statements of fact and assurances from both parties

7. Covenants: Ongoing obligations of the parties

8. Governing Law: Jurisdiction and applicable law

What sections are optional to include in a LLC Share Purchase Agreement?

1. Earn-out Provisions: Used when part of purchase price is contingent on future performance

2. Non-compete Clauses: Restrictions on seller's future competitive activities

3. Tag-along/Drag-along Rights: Rights regarding future sales of interests

What schedules should be included in a LLC Share Purchase Agreement?

1. Disclosure Schedule: Detailed disclosures relating to representations and warranties

2. Current Operating Agreement: Existing LLC operating agreement

3. Financial Statements: Recent financial information of the LLC

4. Member Consents: Required approvals from other LLC members

5. Transfer Instruments: Forms for documenting the actual transfer

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

United States

Publisher

Ƶ

Cost

Free to use
Clauses








































Industries

Securities Act of 1933 and 1934: Federal laws governing securities transactions, including registration requirements, anti-fraud provisions, and disclosure obligations for membership interest transfers

Internal Revenue Code: Federal tax regulations affecting membership interest transfers, including capital gains treatment and tax structuring considerations

State LLC Laws: State-specific Limited Liability Company Acts governing LLC operations, transfer restrictions, and compliance requirements

Blue Sky Laws: State securities laws governing registration requirements, disclosure obligations, and anti-fraud provisions for membership interest transfers

State Contract Laws: State-specific contract formation and enforcement requirements, including statute of frauds provisions

Uniform Commercial Code: Particularly Articles 8 and 9, governing certificated membership interests and security interests

Operating Agreement: Company's internal governance document that may contain transfer restrictions, procedures, and requirements

Buy-Sell Agreements: Pre-existing agreements governing the terms and conditions of membership interest transfers

Rights of First Refusal: Existing provisions giving certain parties priority rights to purchase membership interests before third-party sales

Tag-Along/Drag-Along Rights: Provisions affecting minority and majority members' rights in membership interest sales transactions

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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