Hello I have registered an LLC in the state of NJ in 2000 and being sole member I didn’t care to create an operating agreement till I have the need now to produce one.
Though I am the only member, if I want to add more in the future, how shall I structure my operating agreement?
If I create a Single member Operating agreement, Can I be able to change it later to reflect multi-member? Does this operating agreement need to be submitted with the state authorities or IRS? Appreciate if you could share some light on this.
– Roger, New Jersey
The IRS does not need a copy of your operating agreement, and neither does the state.
However, the operating agreement is the document that governs the relationship between the members of the LLC, and between the LLC and its members.
Without a written operating agreement, the default rules of your state govern your relationship with your fellow members and between you and the LLC.
Regarding your question about amending an operating agreement–yes, you absolutely can amend it. In fact, it is extremely common to amend and/or restate operating agreements.