LLC and Shares Question. I know YANAL...

I know you are not a lawyer. Just give me your educated perspective.

I have a LLC. Can we amend the bylaws so that instead of using the standard “membership interests” method of ownership and management. Can we convert to a “shares” method of ownership?

I would like to convert our LLC to a shares method of ownership to give us more flexibility in fundraising. We could say ownership is now defined by shares of common and preferred stock. Each member owner would have their ownership percentage converted to preferred stock.

If everyone agreed with the conversion…can we do this? I am pretty sure my lawyer said we could have done this at the beginning…but we didn’t. Anyone see a problem I should think about before contacting my lawyer?

Thanks!
Matt

[Moderating]

Please note that we do not permit questions on specific legal situations here. See this sticky at the top of this forum.

On that basis, I am closing this.

Colibri
General Questions Moderator