Choosing the proper structure for your organization is a crucial step. However, many businesses will rush this step and eventually file articles with information that might require changes sooner or later. But even if that is the case, you really do not have to worry that much. Why?
So, if you are wondering how do you make changes to your LLC, you would want to read til the end!
When Is Amendement to LLC Documents Necessary?
Before knowing about the process of making changes, you must know when changes are actually necessary. Generally, these are the cases:
Change in the Name of LLC
If you are trying to change the LLC’s legal name, you will need to file for that change. However, you should note that you can not just use the changed name before it is approved.
And before you file for the changes, you should find out whether the name you have in mind is available for your state or not.
That said, there will be no need to go through too many hassles regarding whether the name you have in mind is available. You just need to access the LLC registration records of your state.
Change in Membership or Ownership
You should file an amendment to the operating agreement when there is a change to the members or managers of the LLC.
Although this amendment is generally made internally, some states might require the LLC to report the changes. So, check the rules of the state you are operating in.
If there is a change in address for you or your registered agent, you will need to make amendments. You must also make an amendment to the operating agreement if you decide to make another modification to them.
That can include modification in the LLC from manager-managed to member-managed.
Things to Consider Before Making Changes to the LLC
There are a couple of factors that you should consider before filing the amendments. Here is a brief description of each:
Ensure the Manager or All Members Are on Board with the Change
First, you will need to look at the written consent requirements for making the changes. Some states will require you to make sure all members agree with the changes before you make the amendment.
Refer to the Founding Documents of LLC
A well-formed operating agreement of an LLC generally has defined methods for proposing and finalizing the changes. Check whether your founding documents have these provisions or not.
If so, make sure that you follow each of them properly before making the amendments.
Figure Out When You Need to Report Amendments
Generally, changes to the Articles of Incorporation should be filed as Articles of Amendment. And they will need to be submitted to the state. After that, the state will confirm the changes.
These changes include modifications in the name, registered agent, or address.
Changes for the other factors, such as the operating agreement, are not generally filed with the state. However, you might need to report the changes to the state afterward.
Consider the Requirements of Amendment Announcement
Some states will require you to publicize the changes you make to the structure, location, or name of the LLC.
In fact, some states might require you to publish the changes three times in a newspaper that is distributed in the country or state where your LLC is operating. Make sure to consider this requirement.
How to Make Changes to Your LLC?
So, how do you file an amendment? Well, it is pretty easy. You just need to go through these steps:
Step 1: Prepare the Amendment Article within the Time Frame
A lot of the states require you to file the amendment within a month of the change. If you fail, you might have to pay a severe penalty or a fine. So, it is better to prepare the amendment articles right after you make any changes to your LLC.
That said, when you are filing the form, you will need to describe what the change is. Along with that, the form will require the effective date of the change. If the LLC is member-managed, it will require a member’s signature.
On the other hand, if the LLC is manager-managed, it will require the manager’s signature. Also, article templates for the amendment are available online for free. So, you will not need to pay any fees to get the file!
Step 2: Send the Form
After you fill out the amendment form, you will need to send it to the agency or department with which your LLC is signed up with. Each state generally places LLC management under a particular government body.
Some might use the Secretary of State. Also, some might give this power to the treasury.
Step 3: Pay the Fees
As there is no need to file the Operating Agreement with the state, you will only need to pay the fee of amending the Articles of Incorporation. This fee will vary from one state to another. But it usually ranges from 40 USD to 150 USD.
Step 4: Update the Marketing Materials with the Changes
When you get the approval, you should make any updates necessary to the marketing materials. These updates will make the info available relevant to the changes that you just made.
Still wondering how do you make changes to your LLC? Well, you just need to go through four simple steps. However, before you initiate the amendment, you need to consider whether the change is required or not.
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