What type of asset is membership in a Limited Liability Company (LLC)?

Membership in a Limited Liability Company (LLC) is classified as personal property. This is because an LLC itself is a legal entity that provides limited liability to its owners (members) and is distinct from physical assets like real estate. The ownership interest in an LLC represents a right to participate in the profits, losses, and management of the company, as well as a claim on its assets upon dissolution.

Personal property encompasses all types of property that are not classified as real property, which generally includes tangible assets (like vehicles or furniture) as well as intangible rights, such as ownership in a business entity like an LLC. Thus, the rights associated with LLC membership—such as profit sharing and management control—are considered a form of personal property.

In contrast, real property refers specifically to land and anything permanently attached to it, intellectual property pertains to creations of the mind like inventions and trademarks, and public property is owned by government entities for public use. These classifications clarify the nature and legal standing of LLC membership as a form of personal property.