Need a Written Operating Agreement
===========Question: I am the managing member of an
LLC in New Jersey and have a question concerning other members of
the LLC. Currently I have two members other than myself of my LLC
and would like to know if I would be able to remove them from the
members list without any repercussion from the members. Do I need a
written consent that they acknowledge that they are being taken off
or can I just remove them and notify them of it at a later time?
There has been no signed agreement between me and the other two
members concerning the LLC's practices, division of clients or
division of profits. The other members and myself are not seeing eye
to eye and I would like to take on a new member and remove the other
two...is this possible?
===========Reply: Yours is a typical
situation when people try to form businesses without the appropriate
legal help. Unfortunately, you do not have a written Operating
Agreement. This means that the terms of your LLC agreement are
"oral." It does not mean that you have NO agreement. You can not
remove the other members except under agreed terms or by law. You
must contact a business lawyer immediately!