Colorado LLC amendments
Looking for some advice from anyone who’s been through this before, especially any real estate attorneys or investors familiar with Colorado LLCs.
We have a property-specific LLC that currently owns one investment property. Right now it’s owned 50/50 between my LLC and my business partner’s LLC.
We’re looking at bringing on a third partner, who would own 50% of the property-specific LLC. My partner and I would each go from 50% ownership down to 25%.
Assuming everyone is on the same page, what’s the typical process for making that change?
- Is it as simple as amending the Operating Agreement and adding the new member?
- Do each of us assign 25% of our membership interest to the new partner?
- Is there anything that actually gets filed with the Colorado Secretary of State, or is this mostly handled through the Operating Agreement and internal documents?
- Anything else we should be thinking about from a legal or tax standpoint before we talk with our attorney?
Just trying to educate myself and understand the process before we engage an attorney. Appreciate any thoughts or experiences!