Economic interest owner
North Carolina LLC glossary
An economic interest owner is a person who owns an economic interest in a North Carolina limited liability company but is not a member. The term is defined at N.C. Gen. Stat. 57D-1-03(11).
The economic interest itself is the proprietary interest in the LLC's capital, income, losses, credits, and other economic rights, including the right to receive distributions.
Owning an economic interest is not the same as being a member. Membership carries management and approval rights that an economic interest alone does not.
Key details
- Defined at N.C. Gen. Stat. 57D-1-03(11), which since Session Law 2025-55 expressly includes special economic interest owners within the term.
- The economic interest is defined separately at N.C. Gen. Stat. 57D-1-03(10) and includes the right to receive distributions from the LLC.
- Under N.C. Gen. Stat. 57D-5-02, an economic interest is transferable in whole or in part, and the transfer does not entitle the transferee to exercise any rights of a member other than to receive the economic interest transferred.
- Under N.C. Gen. Stat. 57D-3-02(b), a member who becomes a debtor in bankruptcy, executes an assignment for the benefit of creditors, or has a receiver or liquidator appointed automatically becomes an economic interest owner entitled only to the economic interest.
- Under N.C. Gen. Stat. 57D-5-04(a), an economic interest owner becomes a member only with that person's own approval and through one of three routes: as provided in the operating agreement, by approval of the members under N.C. Gen. Stat. 57D-3-03(2), or in the manner permitted under N.C. Gen. Stat. 57D-6-01(3).
- Admitting any person as a member requires the approval of all members under N.C. Gen. Stat. 57D-3-03(2), unless the operating agreement provides otherwise.
According to N.C. Gen. Stat. Chapter 57D, sections 57D-1-03, 57D-5-02, and 57D-5-04, as of August 21, 2026.
Related
This glossary entry is for educational purposes only and does not constitute legal advice. It states general North Carolina law as of August 21, 2026 and may not apply to your situation. For advice on a specific LLC or estate, speak with a licensed North Carolina attorney.
