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File Type: Word Price: $19.99
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Summary:
| Like corporate bylaws, an LLC operating
agreement establishes the workings of your LLC. An LLC operating agreement
allows you to formalize your financial and working relationships between all
members of the LLC. In your LLC operating agreement, all members of the LLC
owner's percentage of ownership in the LLC, his or her share of profits (or
losses), his or her rights and responsibilities, and what will happen to the
business if one of you leaves are all formalized and documented.
While many states do not legally require your LLC to have an operating
agreement, it's unprofessional to run an LLC without one (even if you're the
sole owner of your company). The LLC operating agreement, even when the LLC is
one person, offers some legal protections not provided to the sole proprietor.
If you operate as an LLC without a written agreement the courts are most likely
to see you as a sole proprietor and treat you accordingly; not affording you
some of the protections offered had you formalized an LLC operating agreement in
writing.
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Return On Investment:
Save 15 to 20 hours compared to preparing this LLC
operating agreement yourself or 5 to 8 hours of an attorney's time.
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