How to Fill Out LLC Membership Certificate? (Best Practices)
Filling out an LLC membership certificate correctly is essential for maintaining accurate records and ensuring proper governance within the organization.
After conducting extensive research and consulting legal experts in business formation, I’ve developed a comprehensive 5-step guide on how to fill out an LLC membership certificate.
The following article will discuss how to fill out an LLC membership certificate and what information should be included to cater to your membership interests.
- To fill out a limited liability company (LLC)membership certificate, gather information about the LLC and then list each member's name and membership interest.
- An LLC membership certificate provides evidence of ownership and membership interests in an LLC.
- LLC membership certificates validate ownership and assist in record-keeping accuracy.
- You can use a membership certificate to simplify profit distribution among members.
How Do You Fill Out an LLC Membership Certificate?
You can fill out an LLC membership certificate by following the steps below:
Step 1: Gather information about the LLC, including its name, state of registration, and agent. You will also need to know the membership interests of all members (represented as a percentage or fraction).
Step 2: Next, fill out the membership certificate form. Be sure to list the company's name, state of registration, and registered agent at the top of the form.
Step 3: Under "Membership interests," list each member's name and membership interest (represented as a percentage or fraction).
Step 4: Sign and date the membership certificate.
Step 5: Have all members sign and date the membership certificate.
I recommend having your LLC membership certificate notarized by a public notary.
What Is an LLC Membership Certificate?
An LLC membership certificate is a document that states who the members of an LLC are.
It proves whether you own a membership interest in your business and also helps determine how much overall profits will be split among all shareholders.
For our company, the LLC membership certificate lists the limited liability company's name, the state in which it is registered, and the membership interests of each member.
The membership interest will be represented as a percentage or a fraction ("50/100").
If you are an owner of an LLC, it's important to have a copy of your LLC membership certificate on file. This document can be used to prove your membership interest if there is a dispute or legal action taken against the LLC.
What’s Included in LLC Membership Certificates?
When issuing LLC membership certificates, they must include the following information:
- The company name and its state: This is easy enough to find out by looking at your LLC operating agreement or LLC articles of organization.
- The name and address of the LLC member: Make sure to include both the first and last name as well as the mailing address.
- The ownership interest percentage that is being assigned to this particular LLC member: This will be a decimal number followed by "%." For example, if you own a 50% ownership interest in the LLC, your membership interest percentage would be .50.
- The effective date of this certificate: This is usually the day that the document is signed or written.
- Signature lines for all members of the Limited Liability Company: Make sure to get everyone's signature on this document.
Writing an LLC Membership Certificate
Drawing from my experience, to write LLC membership certificates, you need to issue an LLC membership certificate template and some basic information about the LLC ownership.
Here is what you should do:
- First, find out the other members' interests in your company by looking at your articles of organization or LLC's operating agreement. If those aren't available, ask each member for their percentage interest.
- Next, fill out the template and have all other members sign it.
For our company, we ensured our membership interest certificates were notarized, to guarantee that when we issued membership certificates, they would hold up in court if ever needed for legal purposes.
The template for LLC membership certificates can be found by searching for "LLC membership certificate template" online .
Adding New Membership Units
Adding new membership units to an LLC can be a little more complicated than issuing membership certificates to original members.
This is because you must amend your company's articles of organization and operating agreement and have everyone with a stake in the company sign off on the changes.
The process for issuing new membership units is as follows:
- First, gather all existing LLC members/LLC owners together so that they can give their consent for adding more membership units
- Then, amend your articles of organization by filling out a form at your state's LLC office
- After the amendment is complete, have all members sign and date it
- Finally, send a copy of the amended document to all members
Do I Need to Have My Membership Certificate Notarized?
You must have your membership certificate notarized to ensure its authenticity and legal validity.
A notarized certificate verifies your membership, often required for various official purposes such as legal proceedings or professional associations.
Notarization adds credibility and helps prevent the fraudulent use of membership certificates.
What Is the Purpose of Membership Certificates?
The purpose of a membership certificate is to note individual members' company ownership.
They're often included with articles of organization or the LLC operating agreement and serve as proof that an owner has been admitted to membership.
Is a Membership Certificate the Same as a Share Certificate?
A membership certificate and a share certificate serve different purposes in corporate structures.
A membership certificate is a document that proves you are a shareholder of a limited liability company. On the other hand, a share certificate is a document investors receive in exchange for their money and the ownership percentage.
What Is an LLC Membership Ledger?
An LLC membership ledger is a document that lists all of the transactions made by a member between specified dates. The records can be used as proof of membership status to determine how much money is owed in fees and other purposes.