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Question added to topic Legal Basics For StartupsSeptember 4, 2007

What document do I need to change who the sole member of an LLC is?

What document, for the purpose of financing, is proof of who the sole member is in an LLC? My bank will not accept an amendment filed by me two years ago making my husband sole member instead of me.
The sole owner of an LLC owns 100% of the membership interests of that LLC. What you require is called an assignment, which is a document that transfers the membership interests to you and states the consideration (what you paid in cash or kind) for the interests. You should also check the laws of your state to determine if it requires notice of this change to be filed with the state. Some states require that the names of the owners be listed on the articles of organization, in which case, an amendment to the articles would also be required. You should consult a local attorney familiar with these transactions to prepare the proper documentation.

Nina L. Kaufman, Esq. is an award-winning New York City attorney, edutainer and author. Under her Ask The Business Lawyer brand, she reaches thousands of entrepreneurs and small business owners with her legal services, professional speaking, information products, and LexAppeal weekly ezine. She also writes the Making It Legal blog.

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