A Limited Liability Company (LLC) is a separate legal entity that can conduct business just like a corporation with many of the advantages of a partnership. It is taxed as a partnership. Its owners are called members and receive income from the LLC just as a partner would. There is no tax on the LLC entity itself. The members are not personally liable for the debts and obligations of the entity like partners would be. Basically, an LLC combines the tax advantages of a partnership with the limited liability feature of a corporation.
An LLC is formed by filing articles of organization with the secretary of state in the same type manner that articles of incorporation are filed. The articles must contain the name, purpose, duration, registered agent, and principle office of the LLC. The name of the LLC must contain the words Limited Liability Company or LLC. An LLC is a separate legal entity like a corporation.
Management of an LLC is vested in its members. An operating agreement is executed by the members and operates much the same way a partnership agreement operates. Profits and losses are shared according to the terms of the operating agreement.
The Oklahoma Operating Agreement is a legal document designed for businesses operating in the state of Oklahoma, specifically those organized as limited liability companies (LCS) under the Uniform Limited Liability Act (UCLA) and the Revised Uniform Limited Liability Act (SULLA). This agreement lays out the rules and provisions that govern the internal operations and management of an LLC. There are two primary types of Oklahoma Operating Agreements that correspond to the different versions of the uniform acts. Firstly, the Oklahoma Operating Agreement under the Uniform Limited Liability Act is specifically intended for LCS organized prior to November 1, 2010. Secondly, the Oklahoma Operating Agreement under the Revised Uniform Limited Liability Act applies to LCS formed on or after November 1, 2010. The Oklahoma Operating Agreement serves as a crucial tool for LCS to establish the rights and obligations of its members, define procedures for decision-making, and outline rules for profit distribution and tax allocations. It enables LLC owners to customize the governance structure and operational framework based on their specific needs and objectives, ensuring a smooth and efficient operation of the business. Key elements typically included in an Oklahoma Operating Agreement may cover member roles and responsibilities, voting rights, capital contributions, profit and loss allocation, buyout and transfer provisions, meetings and decision-making processes, dissolution procedures, and dispute resolution mechanisms. It is important for Oklahoma-based LCS to have a comprehensive Operating Agreement that adheres to the relevant version of the uniform act they fall under. This ensures compliance with state laws, protection of member rights, and facilitates smoother business operations. Consulting with an attorney well-versed in Oklahoma business law can greatly assist in drafting and customizing an Operating Agreement tailored to the specific needs of the LLC while taking into account the provisions outlined in the Uniform Limited Liability Act or the Revised Uniform Limited Liability Act.
