What if I want to add a new member to my LLC? Can I?
You probably can. First look at your LLC Operating Agreement. This document will govern whether or not you can add new members and the procedure to do it. Usually, a vote of the Members will be required to admit a new Member and the document will require that a certain percentage of the current LLC members must approve. Make sure all requirements set forth in the LLC Operating Agreement are met and documented.
If the new member is investing a substantial amount of money or other property you should check with an attorney to determine if there are any securities related obligations.
Can I start an LLC and get rid of some liability problems?
The answer is “No.” It seems that I get this question regularly from people who are dealing with financial or legal problems. Unfortunately, the liability protection from an LLC begins at the moment it is created. Forming an LLC for your business activity is always a good idea and don’t wait until a lawsuit is pending. If a properly maintained LLC is in place it can minimize future liability.