The LLC Operating Agreement and Articles of Organization are essential documents for any business forming as an LLC in the United States. These documents are used when establishing a new LLC or reorganizing an existing business into an LLC structure. The Operating Agreement portion details the internal operations, including membership rights, profit sharing, and management structure, while the Articles of Organization officially registers the entity with the state. These documents provide crucial protection for members by establishing clear operational guidelines and ensuring compliance with state regulations. They're particularly important for businesses seeking liability protection while maintaining operational flexibility.
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1. Parties and Formation: Identifies all members and formally establishes the LLC
2. Background: States the purpose of forming the LLC and basic intent of the parties
3. Definitions: Defines key terms used throughout the agreement
4. Business Purpose: States the primary business activities of the LLC
5. Management Structure: Defines whether the LLC is member-managed or manager-managed
6. Capital Contributions: Details initial and subsequent capital contributions requirements
7. Profit and Loss Allocation: Specifies how profits and losses will be distributed
8. Voting Rights: Establishes voting procedures and requirements
9. Transfer Restrictions: Details restrictions on transferring membership interests
10. Dissolution: Outlines procedures for dissolving the LLC
1. Tax Provisions: Specific tax elections and procedures for special tax treatment requirements
2. Buy-Sell Provisions: Detailed procedures and terms for buying out members' interests
3. Non-Compete Clauses: Restrictions on competitive activities by members during and after membership
4. Intellectual Property Rights: Provisions governing IP ownership, protection, and usage within the LLC
1. Schedule A - Member Information: Detailed list of members and their initial capital contributions
2. Schedule B - Percentage Interests: Allocation of ownership percentages among members
3. Appendix A - Articles of Organization: Copy of filed Articles of Organization with the state
4. Appendix B - Member Certificates: Copies of membership certificates if issued
5. Appendix C - Tax Elections: Documentation of any special tax elections made by the LLC
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