Attorney-Verified LLC Share Purchase Agreement Template

Attorney-Verified LLC Share Purchase Agreement Template

The LLC Share Purchase Agreement is a legal document that outlines the terms and conditions under which shares of a limited liability company are bought and sold. This agreement is essential for both buyers and sellers, ensuring that all parties understand their rights and obligations. A well-drafted agreement can prevent disputes and protect the interests of everyone involved.

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When considering the transfer of ownership in a limited liability company (LLC), the LLC Share Purchase Agreement plays a crucial role in outlining the terms and conditions of the sale. This document serves as a formal contract between the seller and buyer, detailing essential aspects such as the number of shares being sold, the purchase price, and the payment terms. It also addresses representations and warranties, ensuring that both parties are aware of the company’s financial status and any potential liabilities. Additionally, the agreement may include provisions for confidentiality, non-compete clauses, and the process for closing the sale. By clearly defining the rights and responsibilities of each party, the LLC Share Purchase Agreement helps to prevent misunderstandings and disputes, facilitating a smoother transaction. Understanding the components of this form is vital for anyone looking to buy or sell shares in an LLC, as it not only protects the interests of both parties but also ensures compliance with relevant laws and regulations.

LLC Share Purchase Agreement Sample

LLC Share Purchase Agreement Template

This LLC Share Purchase Agreement ("Agreement") is made and entered into on this ___ day of __________, 20__, by and between:

Seller: __________________________, located at __________________________.

Buyer: __________________________, located at __________________________.

This Agreement is governed by the laws of the State of __________.

1. Purchase and Sale of Membership Interest

The Seller agrees to sell, and the Buyer agrees to purchase a ___% membership interest in ______________________ LLC ("Company"), with a principal place of business at __________________________.

2. Purchase Price

The total purchase price for the membership interest shall be $__________, payable as follows:

  • Initial deposit of $________ upon execution of this Agreement.
  • Balance of $__________ due on or before __________.

3. Representations and Warranties

The Seller represents and warrants that:

  • The Seller is the sole owner of the membership interest being sold.
  • The membership interest is free from all liens and encumbrances.
  • The Seller has the full power and authority to enter into this Agreement.

4. Conditions Precedent

The obligations of the Buyer to close the purchase of the membership interest are subject to the satisfaction of the following conditions:

  • The Seller must provide all necessary documents for the transfer.
  • The Company must provide consent to transfer the membership interest.

5. Closing

The closing of the sale contemplated by this Agreement shall take place at __________ on __________, unless otherwise agreed upon by the parties.

6. Miscellaneous Provisions

This Agreement constitutes the entire understanding between the parties regarding the subject matter hereof and may only be modified in writing signed by both parties.

7. Governing Law

This Agreement shall be governed by and interpreted in accordance with the laws of the State of __________.

IN WITNESS WHEREOF, the parties hereto have executed this LLC Share Purchase Agreement as of the date first above written.

Seller Signature: ____________________________ Date: ____________________

Buyer Signature: ____________________________ Date: ____________________

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Key takeaways

Here are some key takeaways about filling out and using the LLC Share Purchase Agreement form:

  1. Understand the purpose of the agreement. This document outlines the terms of the sale of shares in an LLC.
  2. Identify the parties involved. Clearly state the names and addresses of the buyer and seller.
  3. Specify the number of shares being sold. This information is crucial for clarity in the transaction.
  4. Include the purchase price. The amount agreed upon for the shares should be clearly stated.
  5. Detail any conditions of the sale. This may include financing terms or contingencies that must be met.
  6. Ensure compliance with state laws. Different states have various requirements for LLC transactions.
  7. Sign and date the agreement. Both parties must sign the document for it to be legally binding.
  8. Keep copies of the agreement. Both the buyer and seller should retain a copy for their records.