Can I Add a Member to an LLC?
I want to add a member to an LLC. Can I do it and how can I do it? The answer to the question is, yes you can, but how to do it will depend on your LLC Operating Agreement. Of course I know you would like to hear just do this and that and you are done. Unfortunately, legal procedures don’t work that way. Legal procedures are governed by the written word. In this case the written word is your LLC Operating Agreement.
You can see if you can add a member to an LLC by looking at your LLC Operating Agreement. This document will say whether or not you can add new member. If it says you cannot add a new member to an LLC. Don’t give up. You will need to amend your operating agreement. To amend, you will look to the document to find out what to do. This may seem like a hassle, but you agreed to be governed by the operating agreement when you set up your LLC. You should look to this agreement whenever a change is made. This is only one reason why the LLC Operating Agreement you use is so important. If you don’t have an operating agreement you must get one. LLC Wizard has a great operating agreement.
Usually the operating agreement will let you add a member to an LLC. Generally a vote of the Members will be required to admit a new Member and the document will require that a certain percentage of the current LLC members must approve. When you add a member to an LLC, you simply need to make sure all requirements set forth in the LLC Operating Agreement are met and documented.
How Do I Add a Member to an LLC Who is Investing?
Just one other caveat that you should be aware of. If you add a member to an LLC who is investing a substantial amount of money or other property, there is one more legal step that will not be covered under your Operating Agreement. Your LLC could have a securities violation. You should check with an attorney to determine if there are any securities related obligations.
