Adding a member to your LLC can be a very straightforward process.
If you started your LLC as a single member LLC, and now want to add another member, your first step should be to consult your Operating Agreement. The Operating Agreement you signed when you first created your LLC may have the required steps to go through when adding an additional member. If your Operating Agreement has these steps, it is absolutely vital to follow those steps to the letter—this is a corporate formality that directly relates to the liability protections you enjoy with your LLC. These steps might include, a vote by the existing members (unanimous or majority?), minutes for the meeting where the vote occurred, and a resolution drawn up detailing the addition of the member.
Make your LLC liability protections “Bear Proof”
If your Operating Agreement does NOT have any procedures for adding a member, you should consult the Texas statutes for provisions regarding voting and meetings. If your LLC wants to take any action, but the procedure is not in the Operating Agreement, the statutes in Texas governing LLCs will control how you go about most changes to your corporate structure.
Once you have determined the procedure, you will want to draft a “Sale and Assignment” Agreement where the membership interest will be transferred to the new member for some kind of contribution made by the new member. Some considerations for this Agreement should be, for instance, how much interest in the company will you be giving the new member, what will their role in the new company be, and how will you retain control over your company if that is a concern of yours.
If you are looking to add a new member to your LLC, Texas Business Attorney Nathaniel Gilbert in San Antonio can help navigate the complexities of the process. From drafting and finalizing the corporate documents necessary to effectuate the change as well as the finalizing of the deal between the parties, Nate Gilbert knows how to effectively and efficiently help companies transform their business and continue to grow.
