If you`re starting an LLC in North Carolina, one of the most important steps you`ll need to take is creating an LLC operating agreement. An LLC operating agreement is a legal document that outlines the ownership and management structure of your business, as well as the rights and responsibilities of the members. It`s not required by law in North Carolina, but it`s highly recommended to avoid potential disputes and legal issues later on.
To help you get started, we`ve put together a sample LLC operating agreement for North Carolina. Keep in mind that this is just a template – you`ll need to customize it based on your own unique business needs and circumstances.
Article I: Name and Purpose
This section should state the name of your LLC and its purpose or mission. For example:
The name of this LLC shall be ABC Ventures, LLC. The purpose of this LLC is to provide consulting services to small businesses in the Raleigh-Durham area.
Article II: Members
This section should list the names and addresses of all the members of your LLC, as well as their ownership percentages and voting rights. For example:
The members of this LLC are as follows:
– John Smith, 50% ownership, voting rights
– Jane Doe, 50% ownership, no voting rights
Article III: Management
This section should outline how your LLC will be managed, including whether it will be managed by a designated manager or by all members. For example:
This LLC will be managed by John Smith as the designated manager.
Article IV: Capital Contributions
This section should detail how much money each member has contributed to the LLC and how future contributions will be handled. For example:
Each member has contributed $50,000 in capital to the LLC. Future contributions will be made at the discretion of the members and must be approved by a majority vote.
Article V: Distributions
This section should outline how profits and losses will be distributed among the members. For example:
Profits and losses will be distributed among the members based on their ownership percentages. Distributions will be made annually, unless otherwise determined by the members.
Article VI: Dissolution
This section should explain how the LLC will be dissolved if necessary. For example:
If the LLC is dissolved, all assets will be liquidated and distributed among the members in proportion to their ownership percentages. Any remaining debts or liabilities will be paid off before any distributions are made.
Keep in mind that this is just a sample LLC operating agreement for North Carolina, and it`s important to consult with a legal professional to make sure your agreement is tailored to your specific business needs. By creating a thorough and well-written LLC operating agreement, you can protect your business and ensure a smooth and successful operation for years to come.