While most state laws allow shareholders to freely transfer shares to a corporation, unless there is an agreement already signed by shareholders that limits transfers, many states set significant restrictions on a member`s ability to sell or transfer an interest in LLC. In small businesses, LLC owners usually wear two different hats. They are often the owners of LLCs, who are called members, and LLC managers. When transferring an interest in an LLC, members may only delegate their interest in membership, not their management role. Members who no longer wish to play the role of manager of the LLC must resign. The process set out in the LLC`s corporate agreement or in state laws for LLCs leads to the appointment of an outgoing member. The outgoing member must inform the other members in one way or another and declare that he renounces membership. As a general rule, renunciation of membership does not require the agreement of other members. A limited liability company (LLC) is a type of business entity that combines the liability protection of a capital company with the flexible structure of a partnership. Owners are designated as members and a member`s own funds are designated as membership interests….