Limited Liability Company Operations

Each state has its own Limited liability company laws, however they vary only slightly because they are based upon the model Uniform Limited Liability Company Act (ULLCA) of 1995, which establishes the following statutes:

• An LLC is considered a legal entity when its members are legally separated from the business.
• An LLC may be established in either for-profit or non-profit capacities/purposes.
• Select states allow one-member LLCs while others require two or more members.
• Without the unanimous consent of the other members, a member's interest in an LLC is non-transferable.
• Future distributions and returns of capital can be transferred by an LLC member.
• In the event of a bankruptcy or lawsuit, only the LLC investment is at risk. Managers and members have limited liability.
• An LLC can be in existence for a fixed or endless period of time.
• A Limited Liability Company can be dissolved upon agreement of its members, dissociation of a member, the occurrence of a specific event stipulated in the operating agreement or on a pre-set dissolution date.

A Limited Liability Company's operating agreement cannot:

1. Unreasonably restrict a member from inspecting company records.

2. Eliminate or reduce a member's duty, loyalty, care, or good faith when dealing with or on behalf of the company.

3. Restrict the rights of third parties.

4. Override the legal right of the company to expel a member convicted of wrongdoing, breach of the operating agreement or making it impractical for the limited liability company to continue its business without specific member involvement.

PROTECT YOUR ASSETS TODAY!