Addendum Definition

An addendum is an additional document or section added to a contract or agreement to provide supplementary terms, conditions, or information after the initial agreement has been created.

Starts at $0 + state fees and only takes 5-10 minutes

Excellent 4.7 out of 5 stars 14,884 reviews

As a business owner, you have the prerogative to change your mind about business operations, governance, and projects. While you the freedom to change your mind, you might need an addendum to officially make the changes you want. 

What is an Addendum?

An addendum, by definition, is usually a written and signed document that changes or makes additions to a previously signed contract or official document. In business, you can find addendums in:

  • Business formation documents (Articles of Incorporation, Articles of Organization, etc.)
  • Third-party contracts
  • Internal business agreements (Operating Agreements, Bylaws, Partnership Agreements, etc.)

While the general addendum definition is the same for different types of business documents, the steps you must follow to make sure your addendum is valid depends on the specific laws applicable to your business. The steps also depend on what kind of document you’re changing. You might have to get agreements and signatures from all co-owners,or third parties before you can make a change. 

Entering into an Addendum: The Advantages

It might require extra work, but there are many addendum benefits. 

A big advantage of adding addendums to your business documents is that you can use them to create new and more beneficial terms for old agreements. An addendum is a fairly simple way to increase your control over the direction of your business. 

In some cases, an addendum is required for your business to remain legally compliant. If certain information changes in documents you filed with the government, you need to file an addendum or amendment to avoid penalties and fines.

If you need to make changes to the business documents you filed with the government, we can help you do it! Our Worry-Free Compliance Service keeps track of your compliance deadlines and files two business amendments for you per year. 

Entering into an Addendum: The Disadvantages

An addendum can help you maintain control over the direction of your business. But it’s not always easy to get all necessary parties to agree. 

If you’re a limited liability company member and you want to make additions to your Operating Agreement, you’ll likely need all members of your LLC to agree to the change. To change your Bylaws as a corporation owner, you’ll probably need to have a meeting and get the agreement of a large number of shareholders. 

If you want to change the terms of a third-party contract, the third party needs to agree. A third party might want to hire an attorney to renegotiate. They might also ask for substantially more from you before they agree to a change. If a third party wants an attorney to renegotiate, it’s best to hire your own attorney to even the playing field. Depending on the circumstances, an addendum can be costly. 

Other Names for an Addendum

There are many additional names for a business addendum, including:

  • Articles of Amendment
  • Certificate of Amendment
  • Contract Addendum

This list is not exhaustive. Also, the different names for an addendum depend on the type of business document you’re changing and where your business is located. 

An Addendum Lets You Change Your Mind

Whether you’re a seasoned business owner or this is your first time venturing out on your own, you’re likely to change directions with your enterprise. If you have contracts or agreements that need additions, you can make those additions with a written addendum. Some addendums require agreement from all co-owners, and some require an agreement from a third party. Whatever terms you want to change in an agreement, it’s important to speak to an attorney first.

We can help!

We can help you form and make changes to your business with our many business formation and maintenance services. We can help you start a venture with our LLC Formation and Corporation Formation Services. Our Operating Agreement Template can make creating a business operations document for your LLC easy. And our Worry-Free Compliance Service can help you stay in good standing with the state and file necessary business amendments. We’re here to help you through the beginning, middle, and end of your journey.

Disclaimer: The content on this page is for information purposes only and does not constitute legal, tax, or accounting advice. If you have specific questions about any of these topics, seek the counsel of a licensed professional.

zenbusiness logo

Written by Team ZenBusiness

Start Your LLC