Changing LLC from Member Managed to Manager Managed: Everything You Need to Know

Limited liability companies, or LLCs, are a common type of business structure that provide entrepreneurs and small business owners with several benefits. An LLC has the flexibility to modify as your company expands and changes, which is one of its advantages. For instance, you can change the management of your LLC from member- to manager-managed if you originally founded it that way. The steps for switching an LLC from member-managed to manager-managed will be covered in this article, along with some related queries like whether you can change your LLC, whether you need a new EIN if you change the name of your company, how to notify the IRS of an LLC name change, and how to update your EIN information.

It is possible to switch your LLC from member- to manager-managed. You must, however, adhere to the protocols set forth in your LLC operating agreement and state law that governs LLCs. The operating agreement will typically outline how modifications can be made and how much member approval is needed. You should check your state’s LLC legislation if the operating agreement does not cover changes or if you do not have one. If I Change the Name of My Company, Do I Need a New EIN? You do not require a new EIN (Employer Identification Number) from the IRS if you alter the name of your LLC. However, you must submit Form 8822-B to the IRS in order to inform them of the name change. You can update the name of your LLC with the IRS using this form.

You must submit Form 8822-B, known as the Change of Address or Responsible Party – Business form, to the IRS in order to inform them of an LLC name change. This form is used to modify a business entity’s name, address, or responsible party. This form can be submitted electronically or by mail. Send the completed form to the address listed on the form if submitting it via mail.

You must finish Form SS-4, the Application for Employer Identification Number, in order to update your EIN data. This form is intended to request an EIN, but you can also use it to amend the details on your current EIN. Along with the updated information, you must also give your current EIN. This form can be submitted electronically or by mail. Send the completed form to the address listed on the form if submitting it via mail.

Finally, it is feasible to convert your LLC from member-managed to manager-managed, but you must adhere to the processes provided in your LLC operating agreement and applicable state law. If the name of your LLC changes, you do not need to apply for a new EIN from the IRS; instead, you must file Form 8822-B notifying the IRS of the name change. You must finish Form SS-4 in order to update your EIN information. Before making any changes to your LLC structure, keep in mind that state regulations governing LLCs may vary, therefore it is always best to speak with an attorney or tax expert.