LLC Operating Agreement Make Notes For Free

A Michigan single-member LLC operating agreement is for limited liability companies with just one owner. The single owner can use this document to record the primary internal operations of the business and establish its purpose.

A Michigan LLC operating agreement outlines how a company will function and includes each member's ownership interest. For an entity with more than 1 member, it is important to have written as there is no other document that records company ownership.

There is no state law in Michigan that requires LLCs to have an operating agreement.

The functionality of internal affairs is outlined in the operating agreement including but not limited to: Percentage of members' ownership. Voting rights and responsibilities. Powers and duties of members and managers. Distribution of profits and loses. Holding meetings.

Additionally, the LLC agreement may address (a) procedures management is expected to follow in performance of its duties, (b) compensation for management (if any), (c) management's ability to delegate authority to certain officers of the company, and (d) management indemnity provisions.

How to Start an LLC in Michigan Choose a name for your Michigan LLC. Appoint a registered agent. File Articles of Organization. Prepare an Operating Agreement. Get an EIN & comply with other tax & regulatory requirements. File annual statements.

While the operating agreement isn't required to be notarized, it is generally recommended that all members sign and date the document.

Each member brought an initial investment of $10,000 into their LLC, so they would probably have equal percent ownership and split their profits 50-50. But an LLC doesn't have to distribute profits that way. Some LLCs might allocate a larger share of profits to a member who does more work.

An LLC operating agreement does not need to be notarized.

Get together with your co-owners and a lawyer, if you think you should (it's never a bad idea), and figure out what you want to cover in your agreement. Then, to create an LLC operating agreement yourself, all you need to do is answer a few simple questions and make sure everyone signs it to make it legal.