Washington LLC Membership Has Its Privileges
Posted Jun 3, 2019
By Washington State Business and Real Estate Lawyer David C. Tingstad
In Washington State, as with most states, LLC members hold certain rights deriving from statute as well as contract rights. Most all of the rights identified in our LLC Act, RCW 25.15 (the “Act”) are subject to modification by agreement. In the absences of an agreement to the contrary, members of LLCs, pursuant to the Act, are entitled to participate in the management of the LLC’s activities and may obtain access to the LLC’s records. However, when a member transfers their membership interest to a non-member, this non-member, now considered a “transferee”, does not have the same rights as a member. Per RCW 25.15.251, transfers are permissible, but do not confer the same entitlements to transferees as to members. For example, transferees are not entitled to engage in the management of the LLC, nor may they obtain access to the LLC’s records.
Understanding your rights within an LLC is vital, whether you are a member or a transferee. Employing competent and experienced counsel can ensure you understand the breadth of your rights and abilities within your LLC. The lawyers at Beresford Booth have many years of experience counseling both individuals and LLCs and would be pleased to assist you in your business matters, especially those involving your LLC.
BERESFORD BOOTH PLLC has made this content available to the general public for informational purposes only. The information on this site is not intended to convey legal opinions or legal advice.