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FORM 5.5— Agreement Adding New Member |
Price: $40.00
Revised: October 1, 2008 - 13 pages
Description:
Form 5.5 is an agreement providing for the admission of a new member to an existing LLC. The form can be used whether the LLC's operating agreement provides for a straight-up arrangement or for special allocations of profits, losses, or other tax items. The form also contains options making it suitable whether the new member contributes cash, property, or services in exchange for a membership interest.
The form has been designed for use when a new member is added to an LLC that already has two or more members. If a new member is joining a single member LLC, the LLC's operating agreement may need to be substantially rewritten unless it already provides for the allocation profits, losses, and rights to distributions between multiple members; defines the management rights of each of multiple members; and contains restrictions on the transfer of members' interests. If the LLC's operating agreement must be rewritten when a new member is added, the necessary paperwork will be reduced if the terms of the new member's admission are covered in the revised operating agreement rather than in a separate agreement relating to the new member's admission.
Features:
- Admission of new member, consent - Agreement adding a new member to an LLC provides for consent of other members for tne new member's admission.
- Capital accounts - Agreement adding a new member provides for adjustments to be made to the capital accounts of the existing members.
- Operating agreement, amendment - Agreement adding new member provides for amendment of the operating agreement.
- Representations and warranties - Agreement adding new member contains representations and warranties regarding the status and financial condition of the LLC.
- Representations and warranties, securities law - Agreement adding new member contains representations regarding the investment intent of the new member and a covenant of the new member not to transfer the interest further without securities law compliance.
- Securities law - Agreement admitting new member contemplates that the interest of the new member in the LLC is a security, subject to state and federal securities laws.
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| WORD FORMAT |
Form ID: 5005-DOC
Title: Agreement Adding New Member
Price: $40.00 |
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| RTF FORMAT |
Form ID: 5005-RTF
Title: Agreement Adding New Member
Price: $40.00 |
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