One of the advantages of choosing LLC as your business entity is the ability to easily add and remove members to and from your organization. However, you should be careful to abide by the terms of your LLC’s Operating Agreement, Articles of Operation or any other documents that detail the process of adding and removing members.

1. Get votes and/or approval

The procedure for removing a member from your LLC will depend largely on your company’s management structure. If your LLC is member-managed, you will need the specified amount of consent from members as outlined in your Operating Agreement. A manager-managed LLC requires the approval of the manager, and in New York State, if you want to remove the manager, you will need a vote or written consent of the majority of your members.

2. Document the details

Your vote should be documented with a written resolution, and the procedure outlined in your Operating Agreement should be followed to remove the member. You may need to determine whether you will buy out the member’s interests in the business and for how much. Be sure to have the removed member sign all documentation, including a separation agreement, to wrap up all loose ends and permanently terminate the member’s formal relationship with the LLC.

3. Review your operating documents

Bear in mind that your LLC’s Operating Agreement is an internal document that is not filed with the state of New York. Since the names of your members are not required to be filed with your Articles of Organization, they will not have to be updated. However, you may want to consider reviewing and revising both documents at this time to ensure you have covered all your bases.

Get Help From Windsor

If you need to remove a member from your LLC, Windsor can help. We will make sure that everything is done legally and professionally, with full documentation. Contact us today to see how we can make removing a member from you LLC an easy and efficient process.