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Operating Agreements | Estate Planning Essentials | WealthCounsel
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An operating agreement is an indispensable foundational document for a limited liability company. It is the rulebook for a company that sets out each owner’s--or MEMBER’s as they’re called in an LLC--rights and obligations in relation to the other members and the company.
LLCs are highly adaptable business entities that can be taxed in different ways. The operating agreement will typically set out how the owners have decided that the company should be taxed. If the owners decide to be taxed under a scheme that is different than the one provided by state statute as a default, an election will need to be made with the IRS.
A central piece of every operating agreement is the provision relating to how profits are distributed. Will the distributions of profits be MANDATORY or DISCRETIONARY? WHEN will the company be obligated to pay out those distributions?
Who gets to make key decisions? What happens when owners decide they want to sell? Learn all that, and more, in this episode of Estate Planning Essentials
WealthCounsel, LLC has been helping estate and business planning attorneys practice excellence for over 20 years. Membership benefits include superior estate and business planning drafting software with Wealth Docx® and Business Docx®, a vibrant community of thousands of attorneys, and thoughtful analysis on breaking news.
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Follow us on social media!
Subscribe to the WealthCounsel Quarterly:
See How WealthCounsel Can Move Your Practice Forward:
#estateplanning #estateplanning101 #wealthcounsel
An operating agreement is an indispensable foundational document for a limited liability company. It is the rulebook for a company that sets out each owner’s--or MEMBER’s as they’re called in an LLC--rights and obligations in relation to the other members and the company.
LLCs are highly adaptable business entities that can be taxed in different ways. The operating agreement will typically set out how the owners have decided that the company should be taxed. If the owners decide to be taxed under a scheme that is different than the one provided by state statute as a default, an election will need to be made with the IRS.
A central piece of every operating agreement is the provision relating to how profits are distributed. Will the distributions of profits be MANDATORY or DISCRETIONARY? WHEN will the company be obligated to pay out those distributions?
Who gets to make key decisions? What happens when owners decide they want to sell? Learn all that, and more, in this episode of Estate Planning Essentials
WealthCounsel, LLC has been helping estate and business planning attorneys practice excellence for over 20 years. Membership benefits include superior estate and business planning drafting software with Wealth Docx® and Business Docx®, a vibrant community of thousands of attorneys, and thoughtful analysis on breaking news.
Please like, comment, and subscribe!
Follow us on social media!
Subscribe to the WealthCounsel Quarterly:
See How WealthCounsel Can Move Your Practice Forward:
#estateplanning #estateplanning101 #wealthcounsel
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