Articles of Organization and Operating Agreement are essential documents required when forming and operating an LLC in the United States. These documents serve different but complementary purposes: the Articles of Organization officially creates the LLC with the state, while the Operating Agreement details internal operations and member relationships. They establish ownership percentages, management structure, voting rights, profit/loss allocations, and procedures for various business scenarios. The documents must comply with state-specific LLC laws and can be customized to meet specific business needs while maintaining legal compliance.
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1. Article 1: Organization: Formation of LLC, name, registered agent, principal office, purpose and compliance with state-specific LLC laws
2. Article 2: Members: Initial members, membership interests, capital contributions, and member rights and obligations
3. Article 3: Management: Management structure, voting rights, meetings, and decision-making procedures
4. Article 4: Capital Accounts: Capital account maintenance, allocations, and compliance with federal tax requirements
5. Article 5: Distributions: Distribution rules, procedures, and limitations
6. Article 6: Transfer Restrictions: Rules regarding transfer of membership interests and ownership restrictions
7. Article 7: Dissolution: Dissolution procedures, winding up process, and asset distribution
1. Buy-Sell Provisions: Detailed rules and procedures for buying out members' interests, including valuation methods and payment terms
2. Special Allocations: Complex profit/loss allocation provisions that deviate from standard proportional allocations
3. Industry-Specific Provisions: Specialized provisions required for compliance with specific industry regulations and requirements
1. Schedule A: Members' Capital Contributions: Detailed list of initial capital contributions from each member, including type and value
2. Schedule B: Membership Interests: Detailed breakdown of percentage ownership interests of all members
3. Appendix A: Definitions: Comprehensive glossary of terms used throughout the agreement
4. Appendix B: Tax Matters: Detailed tax provisions, elections, and procedures for tax compliance
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