Formation of Limited Liability Company Agreement is an agreement that is written to state the conditions that a company has to follow while forming an LLC. A limited liability company (LLC) is a business entity that provides limited liability to its owners and does not need to be organized for profit. LLC is well suited for companies with an only owner and is more flexible than a corporation. The Formation of Limited Liability Company Agreement consists of the rules on how the LLC will be governed.
The parties who are involved in the formation of the LLC agree to the terms and conditions discussed in the agreement. They must also adhere to the rules and regulations of the government which also forms a part of the agreement. The agreement must clearly mention the roles and responsibilities of the entities involved in the agreement, purpose of the business and the capital that is required.
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