Get Real Founder Stories and Practical Frameworks Delivered to Your Inbox Weekly!

Home / Common Start-up Questions

What is an LLC Membership Certificate?

By: Startup 101
Last Updated: November 15, 2024

Get Exclusive Startup Stories and Trending Business Ideas Delivered to Your Inbox

What is an LLC Membership Certificate?

An LLC membership certificate, also referred to as an LLC membership interest certificate or LLC member certificate, is a document that proves an individual’s ownership of a Limited Liability Company. Similar to issuing stock certificates to the shareholders of a corporation, a membership certificate can be issued to LLC members to record their ownership of the entity.  

The LLC membership certificate is not filed anywhere and is not required. 

Many states already require the member’s names and ownership percentage when filling out the Articles of Organization (also called a Certificate of Formation or Certificate of Organization in some states), making this document unnecessary.  Additionally, if the LLC has an Operating Agreement, a list of members and their ownership interest is often recorded in the agreement. 

What’s included in LLC Membership Certificates?

Since there are no state regulations or requirements for an LLC membership certificate, any information that you feel is relevant can be included. A few common entries include:

  • The name of the LLC: This should be the legal name of your LLC as it appears on your Articles of Organization.
  • The state of formation: This should be the state where your LLC was formed.
  • The member’s name: This should be the first and last name of the person who owns the membership interest in the LLC.
  • The member’s percentage of ownership: This should be the individual members’ ownership percentage and the dollar amount of the member’s investment in the LLC. 
  • The issue date of the certificate: This is the date that the certificate was issued. 
  • Signature of the member: The member should sign the LLC membership certificate to indicate their acceptance of ownership.
  • Signature of an authorized person to admit new members: This should be the signature of a person authorized to admit new members to the LLC. This is typically a manager or member with authority over admitting new members.

Subscribe and Join Us

Get Exclusive Startup Stories and Trending Business Ideas Delivered to Your Inbox Weekly!

Some (but not all) of the links on StartUp101.com are affiliate links. This means that a special tracking code is used and that we may make a small commission on the sale of an item if you purchase through one of these links. The price of the item is the same for you whether it is an affiliate link or not, and using affiliate links helps us to maintain this website.

StartUp101.com is also a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to Amazon.com.

Our mission is to help businesses start and promoting inferior products and services doesn’t serve that mission. We keep the opinions fair and balanced and not let the commissions influence our opinions.

Search

READY TO START YOUR BUSINESS?

Get Real Founder Stories and Practical Frameworks Delivered to Your Inbox Weekly!

Get Real Founder Stories and Practical Frameworks Delivered to Your Inbox Weekly!