{"data":{"id":"us-ia/iowa-code-489.404","jurisdiction":"us-ia","citation":"Iowa Code § 489.404","heading":"Sharing of and right to distributions before dissolution.","body":"1. Any distribution made by a limited liability company before its dissolution and winding up must be in equal shares among members and persons dissociated as members, except to the extent necessary to comply with a transfer effective under section 489.502 and any charging order in effect under section 489.503.\n2. A person has a right to a distribution before the dissolution and winding up of a limited liability company only if the limited liability company decides to make an interim distribution. A person’s dissociation does not entitle the person to a distribution.\n3. A person does not have a right to demand or receive a distribution from a limited liability company in any form other than money. Except as otherwise provided in section 489.707, subsection 4, a limited liability company may distribute an asset in kind only if each part of the asset is fungible with each other part and each person receives a percentage of the asset equal in value to the person’s share of distributions.\n4. If a member or transferee becomes entitled to receive a distribution, the member or transferee has the status of, and is entitled to all remedies available to, a creditor of the limited liability company with respect to the distribution. However, the company’s obligation to make a distribution is subject to offset for any amount owed to the company by the member or a person dissociated as a member on whose account the distribution is made.","path":["Title XII - BUSINESS ENTITIES (Ch. 486 - 504C)","Chapter 489 - UNIFORM LIMITED LIABILITY COMPANY ACT","Subchapter IV - RELATIONS OF MEMBERS TO EACH OTHER AND TO LIMITED LIABILITY COMPANY"],"source_url":"https://www.legis.iowa.gov/docs/code/2026/489.404.pdf","current_through":"Iowa Code 2026 edition","vintage":"","retrieved_at":"2026-09-14T19:40:12Z","sha256":"7b968b70c8019db46f50568896e0a5ee31fb5a749610f342dfbcb7c6ee279051","source_id":"us-ia","stale":false,"prev":"us-ia/iowa-code-489.403","next":"us-ia/iowa-code-489.405"},"notice":"GroundRules: Original legal text. Not legal advice."}