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[Music] lets talk about transfers like when theres changes in ownership of an LLC thats gonna have an impact on allocations because somebodys coming in is leaving mid-year somebodys coming in mid-year you have to figure out how you allocate a partial year thats impartial years income or loss to each of those members to the transfer rule and the transfer rate and theres different methods you can you do an interim closing of the books on the date of the transfer or in certain situations you can just Pro rate and say this person was here for 7 months so were gonna give them 7 twelfths of the income how youre gonna do that or whos gonna make that decision is something that should be addressed in the operating agreement when a transfer occurs that can happen in one of two ways it can be a sale among owners so one owner sells to another or sells their interest to a third party or it can be a retirement which effectively means that the partner is withdrawing the memory entity may
