LLC units represent ownership interests in an LLC. LLC members do not have “shares of stock”, but rather receive Units/Interests that collectively equal 100% ownership in the LLC. Units may be in different classes, such as voting and non-voting. LLC units have rights and privileges as determined by the operating agreement which often imposes restrictions on fee transfer and assignability. The advantage of these restrictions is it may make it easier to keep your business partner from selling his interests to your competitor. They often provide for a right of first refusal on the LLC to buy out the units in the case of certain trigger events, such as a member leaving the employment of the company or death. These restrictions on transfer can be helpful in the event of a problem to keep the company.