Adding New Members to an LLC

Adding new members to an LLC will often mean that you need to write a new operating agreement, or add another agreement, often called a joinder agreement, on top of your current operating agreement. At the very least, adding a new partner will change the percentage of ownership interest that you own, which can have consequences for whether or not you may make business decisions. For example, if your operating agreement states that distributions can only be made with a vote of 75% of the members, and you add a fifth member, you will now need four out of five votes to make distributions. Many times, there are issues caused that are more significant than that, and you will want to be prepared for that before adding a new member. Furthermore, your operating agreement likely requires a new agreement before you can legally add a new member.