If you’re thinking about forming a Missouri LLC, you’ll need to put together an operating agreement. This document outlines the roles and responsibilities of the LLC’s members, as well as how the LLC will be managed and governed. In this blog post, we’ll give you a rundown of what you need to know about Missouri LLC operating agreements.
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Overview
What is an LLC Operating Agreement?
An LLC operating agreement is a document that sets forth the rules and regulations for your limited liability company. The operating agreement is important because it helps to protect your personal assets in the event that your LLC is sued. It also provides a clear framework for how your LLC will be governed and how decisions will be made.
While an LLC operating agreement is not required by the state of Missouri, it is strongly recommended that you have one in place. This is because without an operating agreement, your LLC will be governed by the default rules set forth in the Missouri LLC statute. These default rules may not be ideal for your particular situation, so it is best to have an operating agreement in place that specifically sets forth the rules for your LLC.
Some of the things that you may want to include in your Missouri LLC operating agreement include:
-The name and address of your LLC
-The names and addresses of all members and managers
-The ownership percentages of each member
-How profits and losses will be distributed among members
-How decisions will be made within the LLC
-What happens if a member dies or wants to leave the LLC
-What happens if the LLC is dissolved
If you are forming an LLC in Missouri, we recommend that you consult with an experienced business attorney to Draft Your Customized Operating Agreement.
What are the benefits of having an LLC Operating Agreement?
An LLC Operating Agreement is a written agreement that establishes the rights and duties of the members of a Missouri limited liability company (LLC). The Operating Agreement is filed with the Missouri Secretary of State when the LLC is formed.
An LLC Operating Agreement can help you do the following:
-Establish rules for how your LLC will be governed.
-Set forth each member’s rights and responsibilities.
-Detail how profits and losses will be distributed among the members.
-Clarify what will happen if a member leaves the LLC.
An LLC Operating Agreement can also help you avoid personal liability for debts and obligations of the LLC.
What should be included in an LLC Operating Agreement?
When you form an LLC in Missouri, you must create an operating agreement. This is an internal document that outlines the operations and management procedures of your LLC. The operating agreement should include:
-The name, address, and contact information of each member
-The name and contact information of the registered agent
-The purpose of the LLC
-How the LLC will be managed (member-managed or manager-managed)
-How decisions will be made
-How members can join and leave the LLC
-What happens if a member dies or wants to sell their interest in the LLC
-Provisions for Dissolution
An operating agreement is not required by Missouri law, but it is highly recommended. Without one, your LLC will be governed by the state’s default rules, which may not be what you want. An operating agreement can help you avoid misunderstandings and potential disagreements down the road.
How can I get help drafting an LLC Operating Agreement?
You can find template LLC Operating Agreements online, or you can hire an attorney to help you draft one specific to your business. An LLC Operating Agreement typically includes provisions regarding:
-the name and purpose of the LLC;
-the authorized capital of the LLC;
-the names, addresses, and contact information of the members and managers of the LLC;
-the ownership percentages of each member in the LLC;
-the manner in which profits and losses will be distributed among the members;
-the voting rights of each member;
-the process for adding or removing members from the LLC;
-the Process for appointing or removing managers of the LLC;
-provisions regarding how decisions will be made by the members or managers of the LLC; and
-any other relevant provisions specific to your business.
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