![]() ![]() For more information on the basics of LLC ownership, read our Contributions and Distributions guide. If you want them divided a different way, this should be detailed in your operating agreement. The most common option is to distribute profits evenly. ![]() Distributions: How profits and losses will be divided among the members.This is also where you should establish an approach to raising additional funds in the future. ![]() Capital Contributions: The amount of money each member has invested in the business.For more information on managing your LLC, read our Member-Managed vs Manager-Managed guide. Typically, each member has one vote, but you may wish to give some members more voting power than others. Management & Voting: Whether the LLC will be managed by its members or by an appointed manager, and how members will go about voting on business matters.Multi-member LLCs may utilize an equal ownership structure or assign various members different “units” of ownership. Organization: When the LLC was officially formed, who its members are, and how ownership is divided.Some of these stipulations will not have much bearing on the actual operations of a single-member LLC, but are still important to include for the sake of legal formality. Whether you are starting a single-member or multi-member LLC, your operating agreement should address all of the topics below. An operating agreement is a legal document that outlines the ownership structure and operating procedures of an LLC. ![]()
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