Adding Partners to my LLC

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bsimmons 01-06-2011 @ 9:31 PM                          
Member
Posts:
Joined: Jan 2011
Hello, I have a quick question...
I started an LLC about a year ago, and I did all the paperwork online.  I
would like to add some partners to my business and distribute equity to
them, but I am unsure of the best way to do this, and how much it will
cost me.
Does anyone out there know the best way to do this, and how much it will
cost?

Thanks

justgettingby 01-11-2011 @ 11:31 AM                          
Member
Posts:
Joined: Apr 2007
You'll probably want to have a lawyer draft a new
operating agreement, just so things are kosher with your
state laws and to avoid any issues years down the line.

The partners will probably end up buying in to the LLC.  
That seems to be the simplest way to distribute equity.

Long story short: talk to a lawyer.  He or she can tell
you exactly what this takes and what its going to cost.

etsai@ 06-12-2011 @ 3:58 PM                          

Member
Posts:
Joined: Jun 2011
This message is not legal advice nor is it intended to
be.  You should contact a licensed attorney in your
jurisdiction regarding your situation.

With that said, there are several considerations when
adding new members to an LLC:

(1) You may need to amend your Articles of Organization
and notify your state of the new members.

(2) You may need to amend or draft a new Operating
Agreement (as stated above).

(3) Depending on your current operating agreement, you
may need the consent of current members to admit new
members.

(4) Admission of new members may be a taxable event
depending on several factors outside the scope of this
post.

You should contact an attorney in your area to discuss
your situation.  Fees for something like this should be
reasonable and will prevent a lot of headaches down the
road.

Best of luck,

Eric
www.taxlawsd.com


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