An LLC, or Limited Liability Company, is a hybrid between a partnership and a Corporation in that it combines the “pass-through” treatment of a partnership with the limited liability accorded to corporate shareholders. Limited Liability Companies are not traded on exchanges like public companies. In fact, unless the membership agreement has a clause specifically allowing the sale of ownership to any new investor, only with the approval of existing members of the LLC can a person purchase ownership in the company.
Experience in Marketing Illiquid Assets
In general, only “accredited investors” are eligible to purchase ownership in an existing LLC. Due to these restrictions, ownership in Limited Liability Companies can be very difficult to sell. Few buyers are interested in purchasing these assets, and the buyers who are interested may not be acceptable to the members of the company. 1st Trade has experience in marketing these illiquid assets as well as access to a large pool of investors.