What is a best way to include relative-foreigner as LLC member in CA without bothering him to sign formal papers.
I formed single-member LLC in CA. Unfortunately I found later that single-member LLC does not provide usual limited liability protection. I'm thinking about including my brother as a 2nd LLC member giving him around 2-5% of shares to restore liability protection. The problem is that my brother lives in other country, he is ready to help me, but he doesn't want to be bothered by business formalities including signing papers, especially originals, when we should use mail. Is it possible to include him as LLC member in a way that his required formal activity is decreased to zero? My guess is to convert LLC to manager-based, create class of non-voting partners and include him as a silent partner. Does it require any signatures from him? Are any other ways? Thanks in advance.
It appears that you are confused.
A single-member does provide limited-liability protection (assuming that required formalities are addressed appropriately).
The "problem" withe single-member LLCs - one cited frequently by asset-protection geeks - is that if the member has personal liabilities, the member's LLC membership interest can be seized to satisfy the liabilities.
This information does not constitute legal advice and does not establish an attorney-client relationship.
You are making an assumption that I do not agree with - that a single member LLC does not providde liablity protection. Further your solution to create a non-voting class of equity is one of the more complicated means of accomplishing you goal. Finally, other than annual minutes, a member who is not a manager will have normally have nothing else to sign.
The above is general legal and business analysis. It is not "legal advise" but analysis, and different lawyers may analyse this matter differently, especially if there are additional facts not reflected in the question. I am not your attorney until retained by a written retainer agreement signed by both of us. I am only licensed in California. See also avvo.com terms and conditions item 9, incorporated as if it was reprinted here.