Adding a member to a Maine LLC is a simple process. But there’s an extra step if you’re adding a member to an SMLLC. Here’s what you need to know:
Can I add a member to an existing Maine LLC?
Of course. LLCs change all the time. Whether you’re adding a new member, or removing an existing member, the structure of your Maine LLC is up to you. You’ll just need to make sure your state business filing and your internal records are up to date.
How do I add a member to my Maine LLC?
To add a member to your Maine LLC, you’ll have to update your operating agreement. Unlike your Maine LLC Certificate of Formation (which is filed with the state), your Maine LLC Operating Agreement includes the names and addresses of all LLC members. So, when this information changes your operating agreement should, too.
How do I update my ME LLC operating agreement?
The process for updating an operating agreement is usually outlined in the operating agreement itself. Since operating agreements are internal documents tailored to fit specific LLCs, the details of the amendment process can look different from company to company. That said, the general procedure usually includes:
- Drafting an amendment
- Holding a meeting
- Voting on that amendment
- Adopting that amendment (only if there is a majority vote)
If your LLC operating agreement does NOT contain a specific process for amendments, you’ll have to follow the default statutes contained in 31 ME Rev Stat, Ch. 21: Limited Liability Companies.
Can I add a member to an SMLLC in Maine?
Yes. But, when you add a member to a single-member LLC (SMLLC), you’re essentially creating a multi-member LLC. This effectively changes your LLC’s default entity classification with the IRS. (An SMLLC is taxed as a “disregarded entity” by default, while a multi-member LLC is taxed as a partnership by default.) If your entity classification changes, you’ll have to apply for a new EIN through the IRS.
Do I contact ME SoS if I add a new LLC member?
There’s no need to update the Maine Secretary of State’s office when you add a new member to your LLC, since member information is not part of the public record. However, you will have to include your new member(s) information when you file your Maine LLC Annual Report.