Overview of Operating Agreements and Articles of Organization
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Operating Agreements:
- Guide internal operations of a business
- Provide structure and clarity for multi-member LLCs
- Govern economic and business arrangements of LLC members
- Not legally required but recommended to prevent disputes and offer clarity
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Articles of Organization:
- Establish LLC’s legal existence
- Show basic details like name and address of LLC
- Form the LLC under state law
- Are essential for legal existence
Differences Between Operating Agreements and Articles of Organization
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Definition and Purpose:
- Articles of Organization: Establish legal existence
- Operating Agreements: Govern internal operations
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Content:
- Articles of Organization: Basic details of LLC
- Operating Agreements: Management, voting rights, profit distribution
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Legal Requirement:
- Articles of Organization: Required for legal existence
- Operating Agreements: Not legally required but highly recommended
The Role of LLC Resolution vs. Operating Agreement
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Operating Agreements:
- Guide internal operations
- Provide structure and clarity for multi-member LLCs
- Govern economic and business arrangements
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Is an LLC Resolution the same as an Operating Agreement?
FAQ: Operating Agreement
- What is another name for the operating agreement?
- Is a LLC resolution the same as an operating agreement?