A member's ownership interest in an LLC is called a ________.

Question

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The ownership interest of a member in an LLC is referred to as a distributional interest. This is because members receive distributions of the profits and losses of the LLC, in proportion to their ownership interest. Option A (certificate of interest) refers to a document that confirms ownership of a distributional interest, but it is not the actual ownership interest itself. Option C (collateral interest) refers to an interest in property that is held as security for a debt or obligation, which is not relevant to ownership in an LLC. Option D (creditor's interest) refers to a claim that a creditor has against a debtor, which is also not relevant to ownership in an LLC.

A Member's Ownership Interest in an LLC Is Called a ________