Who Can Be a Member of an LLC?
By now, most people know that Delaware is recognized around the globe as the best place to incorporate your company, and that the Delaware LLC is among the most popular business structures, with unmatched flexibility, asset protection, and low maintenance costs.
We work with clients from across the U.S. and all over the world who choose Delaware as the place to form their LLC. Roughly 16% of our business now comes from clients outside the United States.
However, when forming a Delaware LLC, there is occasionally some confusion surrounding who can be an LLC member. Luckily, most individuals and businesses can be an LLC member.
Delaware LLC Membership
Anyone can be a member of a Delaware LLC or corporation. Generally, the members of an LLC are individuals, but it doesn’t stop there. Many people opt to set up the Delaware LLC with another company as the member. This can be a corporation, LP, or even another Delaware LLC.
Often, business owners set the LLC up with an LLC as the member, and additional persons as members. Any mix is permissible. If for any reason the members of the LLC change in the future, not to worry, this is all handled internally with the LLC Operating Agreement.
Traditionally, Delaware LLCs are filed without listing the name and address of the member(s) for public record, since it’s not required when filing the Certificate of Formation in the state of Delaware.
This means that if your business is a adding a member to the LLC, removing a member, or changing the ownership structure, the changes to LLC membership should be addressed within the LLC Operating Agreement.
In Delaware, there is no limit to the number of members in an LLC. You can technically add a member to an LLC at any time, but keep in mind that you'll want need to update the Operating Agreement at the same time.
If you have any questions about membership or forming your Delaware LLC, please call, email, Skype, or live chat from our website during working hours. We’re always here to help!
*Disclaimer*: Harvard Business Services, Inc. is neither a law firm nor an accounting firm and, even in cases where the author is an attorney, or a tax professional, nothing in this article constitutes legal or tax advice. This article provides general commentary on, and analysis of, the subject addressed. We strongly advise that you consult an attorney or tax professional to receive legal or tax guidance tailored to your specific circumstances. Any action taken or not taken based on this article is at your own risk. If an article cites or provides a link to third-party sources or websites, Harvard Business Services, Inc. is not responsible for and makes no representations regarding such source’s content or accuracy. Opinions expressed in this article do not necessarily reflect those of Harvard Business Services, Inc.
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There are 7 comments left for Who Can Be a Member of an LLC?
Caiht said: Wednesday, April 25, 2018Can a trust be the owner of an llc?
HBS Staff replied: Wednesday, April 25, 2018Generally, clients will consult with a tax professional and/or an attorney for something this specific, as there are many variables involved.
vincent esoldi said: Thursday, March 29, 2018Can a 501 c 3 become a member of a for profit L.L.C.?
HBS Staff replied: Monday, April 2, 2018Any entity or person from anywhere in the world can be a member of an LLC. However, you'll want to talk to your tax professional about any limitations or restrictions for the non-profit entity becoming a member of an LLC.
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