JoshDom1898
Member
What is the name of your state (only U.S. law)? California
Ok, so my business partners attorney (who is drafting up our LLC operating agreement) has what he defines as an "economic interest holder" in our operating agreement as someone who has the right to receive profits and distributions (and also losses), but is not classified as a "member".
I was under the impression that you can not own an interest in an LLC without being a member. If I am wrong, please explain how someone can own the right to profits and distributions, yet not be classified as a member.
Ok, so my business partners attorney (who is drafting up our LLC operating agreement) has what he defines as an "economic interest holder" in our operating agreement as someone who has the right to receive profits and distributions (and also losses), but is not classified as a "member".
I was under the impression that you can not own an interest in an LLC without being a member. If I am wrong, please explain how someone can own the right to profits and distributions, yet not be classified as a member.