You might be asking if you can add someone else to your Limited Liability Company (LLC) if you are a business owner who uses one. There is a simple answer: yes, you can. However, there are a few things you should think about first.
You should first check the operating agreement for your LLC. This contract explains your company’s ownership and management structure and can have clauses about adding new members. You might first need to change your operating agreement if it does not cover the addition of a new member.
After reviewing your operating agreement, you should also think about how adding a new member would affect your taxes. The IRS may interpret the addition of a new member to your LLC as a partnership, which could alter the tax structure of your business. A tax expert should be consulted before adding a new member to your LLC.
You might be interested in knowing if your LLC can oversee another LLC in addition to adding a new member. There are several limitations on an LLC’s ability to serve as another LLC’s management in Texas. The managing LLC must be qualified to operate in Texas and must file a foreign LLC registration with the Texas Secretary of State.
You should evaluate the operating agreement of the LLC you intend to manage if you are thinking about managing another LLC. You may need to change the agreement to reflect the new management structure because it may contain clauses pertaining to the nomination of a manager.
Last but not least, you might be wondering if you need to renew your LLC annually if you run an LLC in Texas. Yes, it is the answer. Texas requires LLCs to submit a yearly report and a fee to the Texas Secretary of State. While there is no cost to file an annual report in Texas, there is an annual franchise tax that is dependent on the LLC’s revenue.
Finally, it is feasible to add someone to your LLC, but it’s crucial to study your operating agreement and speak with a tax expert before doing so. There are restrictions and you might need to modify the operating agreement if you want an LLC to manage another LLC in Texas. Finally, Texas LLCs are subject to annual registration renewal and revenue-based fees.
It is not specifically covered in the article “Adding Someone to Your LLC: What You Need to Know” how much it will cost to register an LLC in Texas. However, the filing price for an LLC in Texas is $300, according to the website of the Texas Secretary of State. Additional fees for applying for required licenses and permits, as well as legal costs for legal advice, may also be incurred.