Read on to learn more about what should be included in your LLC operating contract. The articles of the organization outline the management of an LLC at the same time as the enterprise agreement and the corporate statutes in the state where the statutes are submitted. Communications – All communications to members must be sent to the address printed in the enterprise agreement. All notifications are recommended by certified email. The enterprise agreement structures the financial and functional structure of your business – whether it is an S company, a C company, a limited liability company (LLC) or another type of business. As SBA.gov states: «The purpose of an enterprise agreement is to regulate the internal functioning of the company in a way that meets the needs of its members (owners).» First, let us talk about two legal forms of this type, which are important but are often confused: enterprise agreements and statutes. Both are legally important documents and each serves a single purpose. An important part of starting a small business is the submission of all documents in due form. While setting up the legal structure of your business and filling out forms can be painful and frightening, it is often part of the legal process prescribed by law.
Two documents on which many small entrepreneurs are disoriented are enterprise agreements and statutes. Chances are you need a version of both documents for your business, so it`s important to understand each other`s purpose. Companies are legally required to file their statutes with the Secretary of State or a similar registration authority. The articles register the business as a separate entity from its owners. On the other hand, limited liability companies are not always required by law to have an enterprise agreement or to submit the agreement to the registration authority. Each state differs from the forms in which LCs must submit their organizational documents. There are also important similarities between an enterprise agreement and statutes. For example, if there are to be changes or amendments to this agreement, make sure that there are sufficient rules so that no party can make changes without the agreement of the majority or all members. This section of the Enterprise Agreement focuses on how members join the LLC, their contributions, their capital accounts (property accounts) and how profits and losses are distributed to members. It should include: It is never a good idea to use a business contract or agreement, unless it was specifically written for your business and for your state.