Adding & Removing LLC Members or Corporate Shareholders

As business opportunities come and go, you need the flexibility to organize your company to best fit your needs. One important way in which this can be done is through adding and removing members or shareholders. Each class of individual has different requirements.

The procedure for adding or removing members from an LLC is typically governed by the documents created when the LLC was formed, plus any amendments that occurred since formation. In the absence of clear guidelines from the formation documents, there are statutory rules that apply.

In publically traded companies, corporate shareholders may be added and removed through traditional stock purchase and sale. However, privately held companies are governed by different rules when adding or removing shareholders. Privately held companies may also fall under state and federal securities laws.

If you are considering making changes to your LLC membership or corporate shareholders, click here.