This is a good question, and the answer can be easy or it can be complicated. It also depends on the status of the existing LLC. Ask yourself the following questions:
Currently a Sole Member LLC?
First, if the existing LLC is a sole-member LLC, then note that you will (1) probably need to revise or amend the Articles of Organization to change the LLC from a sole-member LLC to a multi-member LLC, and (2) probably need to change the tax status of the LLC if it’s currently a disregarded entity (Learn more about tax status of LLCs).
This is something Law 4 Small Business can help you with, although we don’t have a place where you can purchase this online. Instead, please contact us, and we’ll answer your questions and send you an Engagement Agreement.
Newly Formed or Has History?
Second, is the company newly formed or has the company been in existence for awhile, such that it’s built up some value and/or has had previous revenues?
If the company is newly formed, and your intention is to bring on a new owner as a “founding member” just like you, then you can probably get away with a new operating agreement. For $29, use our expert system, called the Couture Operating Agreement, which allows you to build a highly-customized, high-quality operating agreement (Learn more).
If, however, the company has some history and/or revenues, then what you really need to do is (1) revise the Operating Agreement as discussed above, and (2) put together a Purchase Agreement. Even if the new owner is buying in for $1, it’s critical that you lay some ground-rules for buying into the company. A Purchase Agreement should include important representations and warranties, to make it clear you’re not promising a return on investment or otherwise create an opportunity for someone (or their estate) to claim they were taken advantage of in some way. It’s best to consult with and hire an attorney for this, although you can purchase a relatively low-cost template from us.
