How does one add a member to an existing single-member LLC? Can both members then be managing members? If necessary, how is this designated?


You add a member by updating your Operating Agreement to show the new member. Some states require that you update your Articles of Organization as well.

In addition to updating the Operating Agreement, there should also be some document showing what the member paid for his/her membership units in the LLC and how many units the new member acquired.

Any member can have the authority of a managing member. This would be designated in the updated Operating Agreement.

Question About Starting A Single Member LLC With Intent to Add Members Later

Question: Hi, I am looking to form an LLC and I’ll be the only member right now. Being a small startup, I’d like to know “best practices” of how this company should run now and how it should be run as soon as I have other members. Thank You!! — by New Yorker Girl, (NY)


The main things are:

1. Create your LLC as soon as possible–before you start entering contracts or selling to the public. If you haven’t created one before, I would suggest using a full-service online incorporation company such as Legalzoom or the Company Corporation.

2. Open bank accounts, credit cards, paypal accounts, etc. in your LLC’s name as soon as possible.

3. Invest in a good accounting software (such as Quickbooks).

4. Make sure you have a written operating agreement–particularly once you add another member to your LLC. (See answer above about mechanics of adding member).

5. Use a payroll service to pay your employees so your business does not get behind on paying withholding taxes.

6. If your business has employees, make sure to obtain worker’s compensation insurance.

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