From time to time, your LLC's fundamental structure as set out in your initial operating agreement will need to change. This LLC operating agreement amendment allows you to make those changes and update your LLC's operating agreement to accurately represent the organization's new operational structure. Since an amendment references the document it is changing, you should have your existing operating agreement and any previous amendments readily available to reference when completing this form.
This amendment begins by referencing the initial operating agreement and all previous amendments to the operating agreement. The purpose of the reference is to clearly identify the correct documents being updated. This is particularly important when there are multiple versions of the operating agreement or various prior amendments to the operating agreement. It may lead to confusion if these versions are not carefully organized.
To identify the original form of the operating agreement being amended, enter the date your initial operating agreement was entered into. Then, enter the date this amendment will go into effect .
The amendment number, in addition to the effective dates entered, chronologically tracks the order of changes and developments in your LLC's operating agreement. If this is the first time you are amending the operating agreement, then enter "1" for the amendment number. If there have been prior amendments to the operating agreement, then enter the number after your most recent amendment for the amendment number. For example, if there have already been two prior amendments, then you would enter "3" because this is the third amendment to the operating agreement.
The LLC's membership and its associated ownership interest in the LLC operating agreement should always be kept up to date. Instead of making confusing piecemeal changes to your document, LegalNature's LLC operating agreement amendment is designed to gather all membership information in one place for a clear overview of the LLC's ownership structure.
If you are making membership and ownership interest changes, then make sure to enter all members, their respective contributions, and their respective ownership interests when this amendment goes into effect. Include all newly admitted members and exclude the information of any members that have been removed.
Similarly, if there have been any changes to the managers, such as adding new managers, removing old managers, or updating a manager's name, then make sure to enter the complete names of all managers. Exclude any managers that have been removed from their post.
For amendments unrelated to the members' ownership interests or the managers' names, make your amendment changes in the "General Amendments" section.
Identify the section being amended from the current operating agreement in the "Section Being Amended" field. This could be a specific section such as "Section 1," "Article 10.3," or "paragraph 3," or it could be a section heading such as "Members' Individual Obligations." Your answer should include as much detail as is necessary to enable a third party (e.g. an attorney, a member, or manager) to locate the referenced section being amended.
Describe exactly how the section being amended should be changed in the "New Text" field. Enter the text that you want to replace the old language with. If you simply wish to remove language from the operating agreement, enter "[Intentionally Blank]" to indicate that the referenced section is intentionally removed.
Every LLC member and manager (if any) needs to review and sign a separate signature page in order to acknowledge that they understand and accept the changes. Each party should consult with an independent attorney or financial advisor if questions should arise. The LLC may also choose to require that each signature is notarized. However, there is no legal requirement for the signatures to be notarized. Distribute copies of the final executed document to all parties and include all signature pages.
A designated representative of the company should gather all the signature pages and place this amendment with the LLC's operating agreement. As with all important company documents, LegalNature recommends that any hard copies be stored at the business's headquarters. Electronic copies of the documents should be stored in a safe location and also be accessible to the company's record keepers and owners.
If the LLC filed its operating agreement with the formation state, then you should check back with your state to file a copy of this amendment as well.
If your LLC is adding new members, then it is advisable for the current LLC members to enter into an LLC membership admission agreement with the new members to ensure everyone is on the same page on how the LLC will operate. Additionally, adding new members may result in changes to your LLC's state articles of organization filings, updates to your Employer Identification Number, and additional filings with the Securities and Exchange Commission. LegalNature's LLC membership admission agreement can help your LLC easily induct a new member into your LLC.
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