LLC Operating Agreement

Are there shareholders in an LLC? Limited Liability Companies do not have stock or bylaws. In fact, LLCs have almost no features of corporations. LLCs are known in legal circles as “unincorporated entities” because they are creatures of contract, rather than corporations which are creatures of statute. But what does it mean to be a […]

We often get questions about LLC stockholders, bylaws, stock certificates, directors, minutes and sometimes a Limited Liability “Corporation.” It’s understandable to have questions about how LLCs are structured and operate. Here’s what you need to know. Do LLCs have stock? Typically, “stock” is not the term used for LLC ownership shares. In most LLCs, the […]

An incorporation lawyer specifically focuses on the laws surrounding the business of forming and maintaining corporations and LLCs. An incorporation lawyer can help ensure that your company is properly formed and in good legal shape. But not everyone needs to hire a lawyer to help form their company.

Members of an LLC are subject to capital contributions and profit distributions based on terms they agree to in the Operating Agreement. Below we talk through several key issues for you to consider as you receive and distribute capital for your LLC. What is a capital contribution? A capital contribution is the cash or property […]

Why Create a Single Member LLC Operating Agreement? Despite having only one member, it is still wise for single-member LLCs to have a written and executed Operating Agreement. The Operating Agreement establishes the separateness of the LLC and its single member and supports the fact that the LLC is not an “alter-ego” of the single […]

What Is LLC Membership Interest? In short, your LLC interest is your bundle of rights and privileges defined by the LLC operating agreement. LCC membership interest is not usually held in the form of a membership certificate like corporate stock. Instead, it is usually set forth in the operating agreement under the term “units”. Like […]