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Good afternoon. Yes, she can easily become a member of your LLC. Any funds contributed would not result in any tax-recognition upon the transfer under either Section 721 or Section 351 of the Internal Revenue Code depending upon whether your LLC is being taxed as a partnership
or a corporation
. To have her admitted, you would need to amend and restate your Operating Agreement
for the LLC to spell out the terms and conditions of her ownership in the LLC and to deal with issues including: i) additional contributions, if necessary, ii) her ownership interest; iii) allocation of income and losses, iv) distribution of available cash; v) transfers of ownership interests in the LLC in the event of 3rd party offers, death, divorce, bankruptcy
, etc. You would then take the Operating Agreement to your bank and instruct the bank to add your mother as a signatory on the LLC account.
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