An LLC operating agreement refers to a document which lays down the terms and conditions of operating an LLC or limited liability company. This document is usually used for start up companies and small-scale companies as the founders of the organization have limited liability in such a company which does need a lot of hassles to be set up and run. An LLC operating agreement touches upon all the details of operating such companies so that all the operations run smoothly and there is no conflicts. It also helps to protect the personal assets of the owners of the company and also avoids paying double taxation.
Before creating an LLC e operating agreement, one must be familiar with all the laws of the state related to this field. Name the people in charge and how will all the profits be divided among them. The agreement must also mention who shall be responsible for making management decisions and how will those decisions be reached.
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Sample LLC Operating Agreement
LLC Operating Agreement
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