You’ve formed your LLC, but now you want to make changes to your LLC’s members (owners). How do you do this?
The following is intended to describe the process for removing or adding members to your LLC.
First, before describing the process for change, it is important that you understand the authority of an LLC. Members are the owners of the LLC. If your LLC is managed by the members (this is usually spelled out in your articles of organization – The document filed with your state to create your LLC), then the members have all authority to make changes to the LLC, including adding or removing existing members.
If you are instead managed by managers, a separate hierarchy of people distinct from the members, then it is the managers (not typically the members) who have the authority to change the membership of the LLC.
Be sure if your LLC removes a member (owner) that it has an agreement to do this with that member. As a rule, you generally cannot just remove a member from an LLC without their agreement.