If you own a company in Delaware, you could eventually decide to add a member to your LLC. This can be done for a number of reasons, such as increasing your team or enlisting a new partner or investor. Fortunately, adding a member to your Delaware LLC is an easy process that only requires a few quick steps to complete.
Review your Operating Agreement as Step One
It’s crucial to evaluate your operating agreement before bringing on a new member for your LLC. The policies of your LLC are described in this document, including how members are joined and deleted. It is advised that you draft an operating agreement if you don’t already have one before including a new member.
After carefully reading your operating agreement, you must get the new member’s permission to join your LLC. A membership interest purchase agreement, which specifies the conditions of the new member’s investment in the business, can be used to accomplish this.
Step 3: Update Your Formation Certificate To add a new member to your Delaware LLC, you must submit an amendment to the LLC’s Certificate of Formation to the state. This can be done via mail using the necessary forms, or online through the Delaware Division of Corporations website.
Update Your Operating Agreement in Step 4 You must modify your operating agreement to reflect the changes after the new member has been added and the Certificate of Formation has been modified. This can be accomplished by making a straightforward modification to the current document, which requires the signatures of all LLC members. Is a Delaware LLC Required to Have Bylaws? Delaware does not need LLCs to establish bylaws, but several states do. Instead, the operating agreements of Delaware LLCs are usually what regulate them. Bylaws, on the other hand, can be used to supplement your operating agreement and offer extra guidance on how your business should be handled if you decide to include them in your LLC’s governing documents.
An essential step in organizing your company and establishing its policies is drafting an operating agreement for your LLC. The following sections must be present in an operating agreement:
– Member Information: All LLC members’ names and addresses should be listed in this section.
– Management Structure: This part should describe the management structure for the LLC, including whether it will be administered by its members or by a manager.
– Capital Contributions: This part should include a breakdown of the capital contributions made by each member of the LLC. – Profit and Loss Allocation: The allocation of profits and losses among the members should be described in this section.
– Membership Changes: This section ought to explain how members of the LLC can be added or withdrawn.
– Dissolution: The procedure for terminating the LLC should be described in this section. How Should an Operating Agreement Be Completed?
An operating agreement can be filled up easily using a template or by writing a unique document from scratch. You must write up an operating agreement and incorporate the details mentioned in the preceding section. The completed form must be signed by all LLC members before being stored on file for future use.