Adding a new member to your LLC is not difficult. The process can vary depending on how your LLC is up, but a good place to start is by reviewing the LLC’s operating and articles of organization. These two organizational documents generally contain terms regarding admission of new members.

If there are multiple LLC partners or members, consent of the majority will typically be required to admit the new member per the LLC operating agreement. If the LLC is a single member LLC, obviously the process becomes a bit easier. In New York, if the LLC operating agreement does not specify the required consents, then the default law requires a vote or written consent of a majority interest in the LLC. Note, that an LLC operating agreement is a private contract, and it is not filed with the State of New York.

Once the new member has been voted in, the next step is amend the operating agreement or draft a new agreement to reflect the addition of the new member. Amendments to the articles of organization may also be necessary, but again this depends on how the articles were initially drafted. For example, we tend to see a lot of issues with the formation documents from people self-file via junk services such as Legalzoom. Without proper representation during formation, adding LLC Members (and every other LLC maintenance issue) will inevitably be more difficult.

If you have questions about adding a member to your New York LLC send us an email and we can schedule a free phone consultation.