Limited Liability Companies (LLC), under most states, are required to be governed by an operating agreement. This article addresses some of the key considerations of a LLC or Partnership Agreement.

Key Considerations of a LLC or Partnership

Below is a brief, non-exhaustive list. It is not established in any particular order of priority.

1. Jurisdiction of the LLC – this is about where to form your LLC, especially when there are multiple LLC members who reside in different states. Also, it is important to consider where the LLC business is being conducted.
2. Characteristics of membership interests (such as voting right and priority on distribution
3. Intended term of the investment – will there be any mandatory buyout triggers? Or repurchase rights?
4. Profit Distribution – timing, amount, and reserve
5. Management structure, responsibilities, and voting rights among members or managers.
6. Key decisions that require unanimous consent from all members
7. Procedure for admission of new members – will this be a vote of majority, or require unanimous vote?
8. Events triggering dissolution and process for winding up the business

If you would like assistance preparing a comprehensive LLC or partnership agreement, contact us to get a flat rate quote.