Full question:
In Louisiana a sole member LLC wishes to admit a new member--will a resolution to that effect suffice or do you need additional forms or contracts such as a member purchase agreement etc, to accomplish the intent?
- Category: LLC
- Date:
- State: Louisiana
Answer:
The process for admitting a new member to a Louisiana LLC depends on the operating agreement and specific circumstances. Generally, a vote by the current members is required to approve the new member, following the percentage outlined in the operating agreement. All pre-admission requirements must be fulfilled.
After approval, ensure compliance with state securities laws, especially if the new member is more of an investor contributing significant capital. If the new member will be active in management, there are usually fewer restrictions.
Once securities issues are addressed, prepare a Membership Issuance Agreement to be signed by the LLC and the new member. It's crucial for the new member to sign a document agreeing to abide by the LLC's operating agreement. Update the LLC records to reflect the new member's admission. If the new member is required to contribute capital or services, document these obligations in a signed agreement.
Refer to the following Louisiana statutes for more details: R.S. 12:1313 (election and removal of managers), R.S. 12:1309 (amendment of articles of organization), and R.S. 12:1319 (records and information).
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.