Avoid probate for your LLC
Most small business owners do not think out what will happen if they die. Your ownership in an LLC is an asset that must be distributed when you die. If you leave no plans, that asset will have to be distributed through a probate - and it may not be easy or cheap to do. How can you avoid that?
Cover the situation in your Operating AgreementSingle Member LLC's often do not have, and in some states, may not be required to have an operating agreement. While in many cases it may not be necessary, if you want to avoid probate you should consider a clause in your operating agreement that says to whom your LLC interest passes upon your death. Often boilerplate operating agreements do not have such clauses so be careful about simply purchasing one. Using a lawyer is probably a good idea.
Spouses could own the LLC as two member interestsFor tax purposes, spouses who form an LLC together are considered a single member unless they elect otherwise. Often it is one spouse who forms the LLC, but since they are married the other spouse (unless specifically disclaiming) will have an interest in the LLC as marital property.
However, you may want to consider owning the LLC as separate members with joint tenancy. This should avoid the probate issue and in some states will provide additional asset protection since it is no longer a "single" member entity.
Separate the ownership and managementAgain, an operating agreement is needed to this, but the LLC can be formed as a manager-managed LLC. The membership interest can be held by the primary owner who will also be the only manager, but the ownership will be in a joint tenancy. That way the active (and alive) member has total control over the entity, but if the person dies a probate is avoided.
Use a Revocable TrustWhile the expense may be higher up front in having to create a trust if you do not have one, it may be worth it. Not only will you be able to put all of your affairs in order, but you can address the ownership of the LLC so as to have the trust control what happens upon your death. The trust will be the member of the LLC and the trust will dictate what happens upon your death. Again this should be set up as a manager-managed LLC so that you can act as the manager in your individual capacity to run the business.