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LLC Operating Agreement
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Member
LLC Operating Agreement: The
members of an LLC are the owners of a business
and should agree in writing on basics on how
they wish to run their business.
As
a guideline a number of questions should be
addressed to avoid future misunderstanding or
disagreements and to establish definitiely who
has the authority to represent the LLC in contractual
agreements.
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LLC Operating Agreement -Issues to be Addressed:
1-
Who are the members?
2- How will be profits and losses be distributed among
the members?
3-
How many shares will each member have?
4-
How much capital should each member contribute?
5-
What services will each member be required to contribute?
6-
If the LLC is not going to be managed by the members
then identify
a-the
number of managers,
b-the identity of the managers and
c-how responsibility is to divided or shared between
the managers and the members.
7-
Vote percentage required for admission of new members.
8-
Restriction of members in regard to share transfers?
A
member operating agreement serves the purposes of
verifying to outside authorities such as banks who
in fact can sign documents on behalf of the LLC. It
also clarifies in writing responsibilities of members
something that could easily become areas of contention
as memories fade.
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