Divorce Papers
Divorce Papers
COMMON QUESTIONS

WHAT IS AN LLC OPERATING AGREEMENT?

An agreement among the LLC Members which governs the management, operation, rights, duties, capital contributions, transfer of interest, voting rights, dissolution,distribution of income and the rights of its members.

WHAT IS A REGISTERED AGENT?

A registered agent is responsible for receiving Service of Notice served upon the company within the jurisdiction of any state where the company conducts business. Service of Process generally includes any legal proceeding, legal notice, or official government communication presented to the company and the registered agent helps keep the company in compliance with these notices. The most common and prefered way of abtaining a registered agent is throught the NRAI which is a company providing registered agents in all 50 states.

WHAT IS THE DIFFERENCE BETWEEN A MANAGER AND A MEMBER?

A manager is a person who generally does not have stake in the company but rather a person appointed by the members (owners) of the company to conduct the company's business concerns, however, a manager can still be a member of the company. A member of the LLC is an owner of the company. Members in an LLC are equivalent to partners in a partnership.

DO THE MANAGERS OF THE LLC HAVE TO BE THE LLC MEMBERS?

NO. The members have the option to appoint one or more non-members to manage the operations of the LLC.

WHAT IS "PHANTOM INCOME"?

Phantom Income is the allocation of net profits without a corresponding distribution to the members. This occurs when a company reinvest its profits back into the company and therefore has no cash to distribute to its members but the members will still be taxed on their allocated share of net profits generated by the LLC without recieving a corresponding distribution of available cash.

IS IT TAXABLE WHEN I CONTRIBUTE MONEY OR PROPERTY TO AN LLC?

In most cases you do not have to worry about being taxed when contributing money or propert to an LLC. Usually no gain or loss is recognized and neither the contributing member nor the LLC is taxed.

WHAT IS "RIGHT OF FIRST REFUSAL"?

It provides the LLC and the other members with an opportunity to match the terms of a third party offer to purchase a member's interest in the LLC. It gives the members of the LLC the right to buy a selling member's interest before it is offered to a third party.

WHAT IS A TAX MATTER PARTNER?

Also known as a (TMP), is a member of the LLC who acts as (1) a liaison between the company and the Internal Revenue Service

(IRS) during an administrative proceeding, and (2) a representative to handle judicial proceedings in connection with the company.

WHERE DO I FILE MY LLC OPERATING AGREEMENT?

The LLC Operating Agreement does not have to be filed with any paticular agency but every member shall keep a signed copy for their records.

WHAT IS A SCHEDULE K-1?

The use of a Schedule K-1 is to report a member's share of the company's income, deductions, credits and other finacial information.

WHAT IS DEPRECIATION?

An income tax deduction which allows a taxpayer to recover the cost of property or assets placed in service.

WHAT ARE BLUE SKY LAWS?

They are regulations designed by the state to protect investors against securities fraud by requiring sellers of new issues to register their offerings and provide finacial details.

 

 

 

ELLCOPERATINGAGREEMENT.COM - DIRECTORY

Terms & Conditions

eLLCOPERATINGAGREEMENT.COM provides information and Documents only.
This site is not a "lawyer referral service" and does not provide or participate in any legal representation.

 

LLC OPERATING AGREEMENT TEMPLATE LLC OPERATING AGREEMENT SAMPLE