What should be in our operating agreement? Does it get filed as well as the actual paperwork for the LLC? We have the paperwork for the LLC but there is not a form for an operating agreement.
2006-09-25 03:56:32 · 3 answers · asked by hunter1981 1 in Business & Finance ➔ Small Business
The operating agreement specifies who the organizers ("initial members") are, how much money, if any, they contribute into the LLC, what economic and management interests those contributions give them, how the company is to be managed, how new memebers are to be admitted, etc.
There are plenty of sample operating agreements on the Internet. See for yourself:
http://www.google.com/search?q=%22operating+agreement%22
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2006-09-25 04:10:06 · answer #1 · answered by NC 7 · 0⤊ 0⤋
LLC stands for Limited Liability Company. Because it is not a partnership or a corporation, the owners of an LLC are not partners or shareholders, they are "members." Such companies are frequently labeled Limited Liability Corporations, but corporation is inaccurate and company is the proper term. An LLC actually combines aspects of partnerships and corporations, so an LLC is less formal and more flexible than a typical corporation, yet offers protection as well as certain advantages that are much the same. For example, members cannot be found personally liable for company debts. Their assets are separate from the assets of the LLC so they cannot be seized. One of the advantages of an LLC is that taxation is based on the partnership model. Flow-through taxation is advantageous since members are only required to pay taxes on their earnings once instead of paying both corporate and individual taxes.
Sample operating agreement can be found at :
http://www.medlawplus.com/legalforms/instruct/sample-llc.pdf#search='sample%20operating%20agreement'
2006-09-25 04:05:56 · answer #2 · answered by CJM 3 · 0⤊ 0⤋
Go to your state's website and they should have instructions for your form.
2006-09-25 04:39:06 · answer #3 · answered by GreeneyedCowgirl 5 · 0⤊ 0⤋