How to add or remove a member of your LLC

You can add or remove a member of your LLC through doola. Depending on your state and the type of change, it may need a filing with the state, an update with the IRS, an update to your Operating Agreement, or a combination of these. ## When the IRS needs to be updated Changing the number of members can change how the IRS classifies your LLC by default: - From one member to two or more: your LLC is generally treated as a partnership (multi-member LLC) instead of a disregarded entity, and the IRS needs to be updated. - From two or more members to one: your LLC is generally treated as a disregarded entity (single-member LLC), and the IRS needs to be updated. - Adding a member to an LLC that already has two or more: the tax classification doesn't change. Usually only your Operating Agreement needs to be updated. If your LLC has elected to be taxed as a corporation, these rules are different. Contact doola support before you make the change. ## How to request the change 1. Contact doola support and tell us which member you want to add or remove. 2. Share the details of each member being added or removed: first and last name, phone number, full address and ownership percentage. 3. We'll confirm which filings your change needs, and you'll see the fees before you pay. 4. If a state filing is needed, we file it for you. When the state approves it, we upload the approved document to your dashboard. 5. If the IRS needs to be updated, we file that update after the state approves the change. If your change includes a state amendment, the IRS update is included at no extra charge. The IRS can take some time to update its records. ## Update your Operating Agreement Update your Operating Agreement so it reflects the new members and ownership percentages. doola can't review the legal sufficiency of your Operating Agreement or recommend specific wording. For legal advice, talk to a licensed attorney.