How Do I Buy Property and Sign for the LLC?

Full question:

I have a LLC was managed by its members in 2005 when it was formed and now I am the sole member. It was formed in March 2005. I have a written general operating agreement dated May 2011. Until that time it was only a verbal operating agreement. Both are acceptable in the state of MT.How do I leagally sign papers for the LLC for real estate transactions? Do I sign the Companys name only, my personal name only, or a combination of the two,my realator does not know. Tim

  • Category: LLC
  • Date:
  • State: Montana

Answer:

Generally, property bought by a LLC is signed in the capacity as a LLC member or manager on the deed, rather than as an individual. We suggest you consult a local attorney who can review all the facts and documents involved to assess your current situation and determine the status of your LLC. Ownership in a LLC is generally considered an asset of the individual member. If that member resigns, the terms of the operating agreement may dictate what happens to his or her ownership. The answer will depend on all the facts and circumstances involved, such as whether there is a buy-sell agreement, etc. The operating agreement or buy-sell agreement of the LLC will govern the procedures for sale. A LLC typically has an operating agreement that governs the procedures for a sale of an interest in the business.

It may be necessary to amend the articles of organization/certificate of formation, a buy-sell agreement is often recommended, and there may be notices of meetings, resolutions, DBA filings, promissory notes or other documents required. The operating agreement governs the requirements and processes for your particular LLC when it comes to termination of a membership in the LLC or sale. Typically, a vote of the members will be required to terminate a membership and so a certain percentage of the current LLC members must approve. All termination or buyout requirements set forth in the LLC operating agreement or buy-sell agreement should be met. In some cases, it may be helpful to have an attorney review all the facts and documents involved to ensure all requirements are complied with.

The sale of a business interest, such as in a LLC can be accomplished through a buy-sell agreement. A buy-sell agreement is an agreement between members of a LLC, partners of a partnership or between a shareholder and a corporation whereby the parties agree to the terms and conditions of a future sale of the partners or shareholder's interest. By signing the agreement, the party contractually limits his or her ability to dispose of his or her interest in the partnership or corporation to the terms of the agreement.

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.

FAQs

Yes, an LLC can sue one of its members. This typically occurs if a member breaches the operating agreement or engages in wrongful conduct that harms the LLC. The operating agreement may outline specific procedures for such actions. It’s important for the LLC to consult with legal counsel to ensure compliance with state laws and to protect the interests of the business.