It’s common for LLC ownership to change hands, or shift over time. Here’s what you need to know about adding a new member to a Montana LLC:
What is a Montana LLC member?
When it comes to limited liability companies, “member” simply means owner. So if a new person buys an ownership percentage in your company, that new person is considered a member of your Montana LLC.
How do I add a member to my Montana LLC?
Adding a new member to your Montana LLC will require you to update your Montana LLC Operating Agreement. As a legal document customized to fit your company, your operating agreement contains the ins and outs of your LLC, including member names, addresses, and ownership percentages. So, if you add a new member, their information will have to be included in your operating agreement.
How do I change my MT LLC Operating Agreement?
The procedure for changing your operating agreement should be outlined in the operating agreement itself. As internal documents tailored to fit the needs of an individual company, operating agreements can look different from LLC to LLC. However, the general process for amending an operating agreement usually involves:
- Drafting the amendment
- Holding a meeting with all LLC members
- Putting the proposed amendment up for a vote
- Adopting the amendment (only with majority approval)
If your operating agreement doesn’t include a provision for making amendments, you’ll have to follow the default LLC statutes contained in the Montana Limited Liability Company Act.
Do I need to contact the Montana Secretary of State to add a new member to my Montana LLC?
Probably not. Montana does not require LLCs to include member information when filing Montana LLC Articles of Organization, so you won’t need to update your public filing with the state—unless you included member information within your articles. In that case, you would simply need to file Montana’s Articles of Amendment for a Domestic Limited Liability Company, and pay the associated $15 fee, to update (or remove) member info.
Should I update my Montana LLC member info with the IRS?
It depends on whether or not you have a single-member LLC (SMLLC). If you add a new member to an SMLLC that’s currently being taxed as a “disregarded entity,” your tax status with the IRS will effectively change. Multi-member LLCs can be taxed as a “partnership” or a “corporation”—but not as a “disregarded entity.” So, if you add a new member to an SMLLC, you’ll have to contact the IRS and Apply for a New EIN.