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Why Your LLC Needs an Operating Agreement

November 4, 2024

An operating agreement is crucial for LLCs as it outlines the operational framework and provides various benefits.
• Customizable Business Operations: An operating agreement allows LLCs to customize their management and ownership structures, including profit distribution, ownership transfer restrictions, tax payment methods, and signatories for business accounts.
• Maintaining Limited Liability: Having an operating agreement helps maintain the limited liability of LLC members by demonstrating the separation between the business and its owners, which is especially important for single-member LLCs.
• Decision-Making Framework: The agreement specifies how decisions are made within the LLC, which is vital for multimember and manager-managed LLCs to avoid conflicts and ensure smooth operations.

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LLC Voting Rights: Who Has a Voice?

September 27, 2022

On average, 4 million new businesses are started each year in the United States. Many of those businesses are organized as limited liability companies (LLCs). Combining the benefits of a corporation and a partnership, an LLC protects its members’ personal assets from business liabilities, avoids double taxation, and provides flexibility…

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How does an LLC Really Work?

September 11, 2020

The limited liability company (LLC) is a popular business structure for new businesses, but what does it really mean to own an LLC? It can provide unique opportunities to customize business ownership to fit your specific needs and circumstances. Here is what you should know about LLC ownership.

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