Purpose of LLC Operating Agreement
An LLC Operating Agreement outlines a company’s ownership, structure, and operations. It establishes rules and procedures for decision-making, allocating profits and losses, adding or removing members, and dissolving the company.
Key Provisions in an Operating Agreement
- Ownership percentages
- Distribution of profits/losses
- Voting rights
- Member responsibilities
- Adding/removing members
- Steps for dissolving the LLC
Missouri’s Requirements for LLC Operating Agreements
In Missouri, a limited liability company needs an operating agreement outlining ownership, management, members’ rights, and responsibilities. It is legally binding and required by the state to resolve disputes between members and protect members’ assets.
Foreign LLC Registration in Missouri
Foreign LLCs must register with Missouri’s Secretary of State and appoint an in-state registered agent. The filing fee for the "Application for Registration of a Foreign Limited Liability Company" is $50 online or $105 by mail.
Maintaining an LLC Operating Agreement
Keeping your LLC operating agreement up-to-date in Missouri is crucial to avoid pitfalls associated with default rules. It ensures proper respect for your business in Missouri courts.
Legal Requirement for Operating Agreement
In Missouri, both single and multiple-member LLCs must have a legally binding operating agreement. In all other states, sole proprietorships and LLCs with two or more members are not required to have an operating agreement, but it is still beneficial to create one.