LLC Members and Operating Agreement
All LLC Members are listed in the Operating Agreement. A Registered Agent agrees to accept legal mail and notices on behalf of your Limited Liability Company (LLC). LLCs should have an up-to-date Operating Agreement that includes the members and their percentage of ownership. Operating agreements govern the LLC.
Number of Members and Tax Considerations
If your LLC is taxed as an S-Corp, the company may have no more than 100 shareholders, each being an individual. There is no limit to the number of members except when the LLC is taxed as an S-corporation.
Who Can Own an LLC
Any person or company can own an LLC. Individuals, corporations, and other LLCs are permitted to be LLC members. Minors can be members in most states, except in a few where they are not permitted. Corporations, partnerships, and non-resident aliens are ineligible if the LLC is taxed as an S-Corp.
Managing an LLC and Adding Members
LLC members take money out of their share of company profits. Manager-managed means appointed managers handle day-to-day operations, while member-managed means members share responsibility for operations. Steps to add members usually involve contributing cash, property, or services to expand markets. Defining profit-sharing ratio and delegating management are key considerations.
Legal and Tax Considerations
An LLC offers liability protection for members. LLC members are personally liable if they personally guarantee loans/debts or act outside business duties.
Minimum Number of Members
An LLC must have a minimum of one member. Most states do not limit the number of members, except when taxed as an S-Corp, then limited to 100 members who are individuals.