Adding New LLC Members Lawyer
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Why is it Difficult to Add a New LLC Member?
Forming a limited liability company (LLC) requires completing documents with the appropriate state agency. The state agency will then issue a certificate giving the company the right to operating as a LLC. After the LLC is formed, members, or owners, will leave or want to join the LLC. When adding a new member to the LLC, it’s important not to incur additional tax information and protect the limit liability status.
What is the First Step I Should Take When Adding a New Member?
First, review the LLC’s operating agreement. An operating agreement is a legally enforceable contract outlining how an LLC will be structured and operate. Focus on any sections about adding a new owner to the LLC. This will help avoid violating any rules and upsetting current owners.
What If We Don’t Have an Operating Agreement Section Regarding New Members?
If the agreement doesn’t outline how to add a new owner, draft a new document addressing the issue. The document should include language explaining the current members’ intent to add the new member by a certain date.
If I Have an Operating Agreement, What is the Next Step?
The members will have to amend the operating agreement to add the new owner. Another option is to create an amendment. In both options:
- Include the original agreement
- Name the parties involved
- Include the date owners approved the new member
- Note in the amended sections
- Include the new member’s classification. For example, the new member may be a managing member or non-managing member
Will I Need to Amend the Articles of Organization I Filed with the State Agency?
Yes. Most state agencies have a form to complete and submit to amend the articles of organization. The form generally indicates the:
- Membership changes
- Membership interests
- Registered agent for service
Do I Need to Contact a Business Attorney for Help?
Yes, hiring a business lawyer will help you add a new member to the LLC without compromising the LLC’s structure.
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Last Modified: 03-17-2016 05:24 PM PDT
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