Emmanuel, what`s going on? Thank you very much. We`re glad you find this so useful 🙂 In a member-Managed LLC, your title is actually Managing Member. This means that you are a member (owner) and have the power to act on behalf of the LLC and engage it in contracts and agreements. While members of an LLC may not consider dissolving the business or buying each other, it is important to include a provision dealing with these actions. This section should specify any plans for dissolution and, if necessary, the dissolution procedure. Some companies are forming with the plan to dissolve on a given date. If this is the case, be sure to include the date in the termination provision of the contract. Some states, including Delaware, California, New York, Maine or Missouri, require a DLC agreement. The guidelines vary by state, but even if you are not legally obligated to have one, it is always a good idea to enter into a written agreement that describes the company. All partnerships need formal and in-depth agreement among the founding members to avoid problems in the future. Partnership agreements act as the statutes of companies and agreements are legally binding on all parties. Agreements should always be developed before a company opens its doors, rather than assembling them after the fact. Partnership agreements clearly define the terms of the partnership and ensure that all partners are on one side on important issues.
The process of developing a partnership agreement can also be beneficial, as it requires partners to think in depth about each partner`s rights and obligations and to develop succession plans and continuity plans in the event of a partner`s premature existence. The formal eLLC agreements also serve as legally binding documents that protect each partner from the possibility of being used by other partners. Hello, Samantha, thank you for the kind words. And I`m glad our site was so helpful. Before I get into the theme managed by managers, I would just add a note on how to be the LLC organizer and keep your documentation in order. Since you form the LLC for your son, you will be the organizer of LLC and will sign the Articles of the Organization of California. Your son`s name is not in the statutes because California does not ask for the member`s information on this form. Thus, after you sign as an organizer and as an LLC, you can sign an LLC Organizer statement in Lieu of Organization Meeting, resign as an LLC organizer and appoint your son as a member. In addition, your son should sign an LLC operating contract. In terms of managing the administration of e.V.
Member-Managed, I think you could go both ways. You can choose that the LLC be managed as a manager in the statutes. Then sign a company agreement managed by managers, in which your son appoints you manager. After that, you are the only one empowered to engage the LLC in contracts and agreements. In other words, you will be the only one who can act on behalf of LLC. However, your son, who is a member, has the power to remove you as a manager because he is the only member (and does not need the agreement of other members, because there is none).