Corporate Education Center | LLC Operating Agreement
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LLC Operating Agreement

An LLC operating agreement establishes guidelines for an LLC in the same way that articles of incorporation govern the operation of a corporation. Common provisions in an LLC agreement include the statement of intent, its business purpose, the time period during which it will operate, how it will be taxed, new LLC member admissions, and member capital contributions.

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Whether you run a limited liability company on your own or with others, you should have an operating agreement. The details of LLC operating agreements vary considerably, depending on a number of factors, but generally include:

  • Tax considerations
  • Number of members
  • Structure of management
  • Member investments
  • Sharing of profits

If there are multiple members, this agreement becomes a binding contract between the members.

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