Legal Question in Business Law in California
Adding my name to a LLC in order to close an existing bank account
My boyfriend has an LLC in his name only. If I were to add my name to this on an Amendment to Operating Agreement-would I be responsible financially for any debt that may occur regarding the LLC. The reason we are doing this is because he is now incapacitated and will no longer need the LLC. I am trying to close the bank account associated with the LLC and he is not able to go to the bank himself. He is paralyzed due to a neck injury and will not and cannot go on his own to the bank. It's just not possible. Also how should I word this on the amendment and does it have to be notarized. What do I need to include as far as pertinent information?
1 Answer from Attorneys
Re: Adding my name to a LLC in order to close an existing bank account
I assume you are asking about ways to take the money out of the bank LEGALLY. That's the only kind of advice attorneys are allowed to give.
The problems you face include complying with the bank's rules regarding withdrawals. The bank is supposed to honor withdrawal requests made over the signature of the owner of the funds or a duly-authorized signer in the case of a depositor which is not an individual, such as a corporation or LLC. In determining who is a duly-authorized signer, the bank is supposed to look at the signature card on file.
Amending the LLC Operating Agreement, and/or filing an official amendment to the LLC's Articles of Organization with the California Secretary of State, would require your boyfriend to do as much signing of papers, if not more, as would be required for him to sign an LLC check to withdraw the funds from the bank.
So, is he capable of signing his name? He doesn't have to be physically present at the teller's window to withdraw the money.
If reading and signing documents is difficult or impossible, there are two thoughts that come to mind. First, your boyfriend needs to have a custodian, guardian or other personal representative appointed by the court. Someone, perhaps his doctor, will know the process; if not, see if the Public Defender's office in your county, or the Public Guardian, handles this for newly-helpless individuals (not may area of expertise, however). The second thought is to discuss the withdrawal issue with an officer of the bank, explaining the circumstances and asking what the bank recommends you (or the lawful guardian) do regarding the funds.
There is a remaining issue; how the LLC will be managed, or liquidated. This too seems to be a matter to be handled by a court-appointed personal representative.
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