Download free limited liability company (LLC) operating agreements which allow the owners, known as ‘members’, to create a binding contract that states the ownership percentage (%), …
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Finally, even a single member LLC should have an operating agreement in order to create greater protection for the member from personal liability. Some courts have found that a single member LLC without an operating agreement resembles a sole proprietorship to such a degree that the corporate veil is pierced under an 'alter ego' theory.Which states require a LLC operating agreement?
If you’re forming—or have formed—an LLC in California, New York, Missouri, Maine, or Delaware, state laws require you to create an LLC Operating Agreement. But no matter what state you’re in, it’s always a good idea to create a formal agreement between LLC members.Why do you need a LLC operating agreement?
The main reason to make an operating agreement is to help ensure that courts will respect your limited personal liability. This is particularly key in a one-person LLC where, without the formality of an agreement, the LLC will look a lot like a sole proprietorship.What should be included in LLC operating agreements?
Most operating agreements include the following: the members' percentage interests in the LLC the members' rights and responsibilities the members' voting powers how profits and losses will be allocated how the LLC will be managed rules for holding meetings and taking votes, and
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