Adding and Removing Members from an LLC in New Jersey
To add or remove an LLC member, the LLC’s operating agreement must be altered and amended accordingly. Intimating the relevant government agencies is also required.
When forming an LLC, an organizational meeting should be held, and an Operating Agreement should be established. The Agreement will direct adding or removing a member.
Any time an LLC adds or removes a member, documenting the change is crucial to protect the interested parties.
When converting from a single-member to a multi-member LLC, special provisions for membership transfer and removal should be in place.
If operating as a single-member LLC and adding a new member, a new EIN will be needed.
Removing a Member from an LLC in New Jersey
The only way to remove a member from an LLC in New Jersey is by submitting a written notice of withdrawal. Consulting with a Business Attorney in New Jersey is advisable due to potential legal and financial consequences.
Consulting with a business attorney experienced in New Jersey LLC law can help understand legal requirements, ensure compliance, and avoid potential pitfalls.
Converting from Partnership to Single Member LLC in NJ
Conversion to a single-member LLC in New Jersey can be done using Form REG-C-EA, “Business Entity Amendment Filing,” similar to the change in the company’s tax registration.
Since New Jersey doesn’t require LLCs to list member information in their articles of organization, submitting a certificate of amendment may not be necessary. However, if members’ names are listed, a NJ Certificate of Amendment and a $100 fee will be required.
The rules for transferring LLC ownership are outlined in the operating agreement at the time of formation in New Jersey, which can be a sale of the business or a change in owner or ownership percentages.