The limited liability company agreement is the key document for your LLC business. But, in order for it to be honored, every member of the LLC should agree to be bound by every provision of this agreement.
How do you do this? Just follow these steps and you will take care of this requirement:
1. When you adopt your first limited liability company agreement for your LLC, every person who is a member of the LLC at that time MUST sign the agreement.
2. The agreement for your LLC must include a provision in the section of New Members that a condition for any person becoming a member of the LLC is that such person sign a written agreement agreeing to be bound by all terms of the LLC’s then existing limited liability company agreement.
3. When a person becomes a member of your LLC, make sure he signs a written document that explicitly states that the member agrees to be bound by the terms of the LLC Operating Agreement. Members can sign an amendment to the agreement or a separate document which is known as an Operating Agreement Addendum. These signed documents get attached to the existing official limited liability company agreement.
There have been many expensive lawsuits dealing with operating agreement that were not signed by every member. This causes a lot of confusion and issues. Bottom Line- every person who is a member must sign the actual LLC operating agreement or a document stating that he or she agrees to the terms of the agreement.
