Operating Agreement For LLC
I would like to set up my LLC personally. Since I will be the only shareholder, can an operating agreement be written rather easily? If so, does anyone have a copy of the one they have personally written?
go to your state's "dept of state" website at "sos.state.ia.us" and see if you can find the forms. Search for LLC...you are looking for "Articles of Organization". You need to file them with your state. Hope this helps !
Jason
When I incorporated myself, I used one of the on-line corps. They created a set of initial by-laws and created everything so that I have complete control over every aspect of the business.
After looking over the by-laws and articles of incorporatoin, I decided to make some changes and add some board members but not give them any control. All it took was to have a special board meeting with myself and to sign the minutes of that meeting and file it with the state ($35.00).
OPerating agreement is different from the actual docs needed to set up the entity. SInce you will be the only owner - you need only the simplest of operating agreements - and depending on your state - you may not need one at all.
[addsig]
I used www.thecompanycorporation.com. Maybe be pricey (didn't really investigate), but they had all the answers.
I used them as well. Simple and quick.
[addsig]
if you are the only member in the LLC then you dont really need an operating agreement, because you are the boss and you can change the way you run your business without getting anyones permission. Now if you are going to borrow money using the LLC the lender will require to see an operating agreement.
from:
. Many states, for example, have a default rule that requires owners to divide up LLC profits and losses equally, regardless of each member's investment in the business. Unless you and your co-owners invest equal amounts in the LLC, it's doubtful you'll want profits allocated this way. To avoid this, your operating agreement must spell out how you and your co-owners want to split profits and losses.
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Why an Operating Agreement Is Necessary
While many states do not legally require your LLC to have an operating agreement, it's foolish to run an LLC without one, even if you're the sole owner of your company.
An operating agreement helps your LLC by guarding your limited liability status, heading off financial and management misunderstandings, and making sure your business is governed by your own rules -- not the default rules of your state.
Protecting Your Limited Liability Status
The main reason to make an operating agreement is as simple as it is important: It helps to 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. Just the fact that you have a formal written operating agreement will lend credibility to your LLC's separate existence.
Defining Financial and Management Structure
Co-owned LLCs need to document their profit-sharing and decision-making protocols as well as the procedures for handling the departure and addition of members. Without a thorough operating agreement, not only will you and your co-owners be ill-equipped to settle misunderstandings over finances and management, but you will also be subject to the rules of your state law (see below).
Overriding State Default Rules
Each state has laws that set out basic operating rules for LLCs, some of which will govern your business unless your operating agreement says otherwise (these are called "default rules"
In this same way, many state laws regarding LLCs will not be favorable to your business. Don't be tempted to rely on them to structure your LLC; instead, decide on the best rules for your situation and put them in a written operating agreement.
Here in Texas you can create an LLC online directly with the sec of state. The $200 fee can be paid on line too. Takes just minutes. Really cool
Good LUCK and Thank You
Hope this helps some
Ted Jr
Ditto Ted - Hey,
I may have a short sale deal coming up i n your neck of Texas very motivated seller. Let me know if you have an interest. I don't have the bandwidth to do a deal 5 hours from my homebase.
C-
I hope I don't get busted for posting in wrong forum...
here in NY an operating agreement is not filed with the articles of organization...so if you are a sole member , what you keep in your safe (operating agreement) is your business...you can create one if the situation arises, to compliment your particular need for that moment.[ Edited by lp1 on Date 01/06/2004 ]
go here and you can download the software to do LLCs in every single state. up to date docs and all relevant filing info from each state! It costs only 39.95
it from a company called standard legal software. I cant post the link but google it and you'll find it.
it cant get better than that! (no i dont work for the company)
[ Edited by reklats on Date 01/07/2004 ][ Edited by reklats on Date 01/07/2004 ]
As an attorney, I generally recommend people using an attorney for these types of matters. However, as a single member LLC, there's not too much you can screw up. Find a good source you can get a form from. Many of the online "free" sources are cruddy. A good book from a local bookstore can give you some generic forms with instructions on how to complete the agreement.