If you decide to establish an LLC, you need to carefully consider your limited liability Company’s management for your business to become successful. LLC operating agreement is one of the primary papers governing the work of your LLC in any state.
This form contains a detailed description of the rights and duties of the corporation and all its members and owners. Moreover, this paper describes the corporation’s entire management process in detail, including holding meetings, procedures for admitting or expelling members and owners, division of the organization’s property, and many other regulatory issues.
It is worth noting that the LLC operating agreement is not a mandatory document in the state of Georgia. However, it is highly recommended to compile the document as it will help you regulate your corporation’s processes and relieve you of some of the difficulties associated with doing business.
There are two types of operating agreements: multi-member and single-member. A multi-member agreement is completed when the corporation has more than one owner. A single-member agreement is completed when the LLC has one owner.
A multi-member agreement implies that the LLC has several members and owners, and each of them participated in the conduct of business to a certain extent. This agreement details all the rights and duties of each of the members and owners. Each participant of the LLC should have a copy of such an agreement, and it is advisable to notarize each separate copy. The fact that a member has a copy of the agreement indicates that they are familiar with the list of respective rights and duties and are ready to fulfill them.
The second type of document is created for an LLC with one member. It may seem to you that there is no point in such a record since there is no need to distribute duties between members and owners. However, this is an erroneous opinion; it is recommended to draw up an agreement even if there is only one LLC member. Such a paper indicates exactly how much money the LLC owner spent on the business.
Creating an operating agreement is almost the same in all states, but there are some differences and peculiarities. For example, you need to pay a different fee for the paper preparation. Therefore, we recommend that you carefully read the laws of your particular state before processing the paper. Also, make sure that you and the rest of the LLC Board understand all the wording in the document. If you have any doubts or do not fully understand something, seek professional legal advice.
If you decide to create an LLC operating agreement, we recommend using our form-building software to avoid mistakes and correctly fill out the document. Do not forget to notarize the paper. Although notarization is not required, it will ensure the document’s legal effect.
Many entrepreneurs in America choose the LLC format for their business. It allows the companies to fully function, but at the same time, it allows them to receive some benefits and reduces risks. For example, if the company suffers losses, the LLC members and owners will not lose money since their liability is limited. As for the benefits, the LLC has the opportunity to pay reduced tax. Another reason for registering an LLC is the ability to include individual entrepreneurs and other organizations on the Board. The measure helps small companies run their business more successfully.
In the State of Georgia, all the necessary details on the operation and organization of an LLC are governed by the State Code, Title 14, Chapter 11. Please review state laws before establishing an LLC to ensure you comply with all State of Georgia laws.
As for the terms used in the operating agreement, you can find them in paragraph 14-11-101 Definitions. Some of the principal terms used in this paper are:
The Operating Agreement is a fairly large paper that can contain up to several pages. At first glance, it may seem rather challenging to fill out the document, but if you know how to do it properly, it’s all easy. We have compiled a detailed guide, in which you will find all the necessary information about creating an LLC.
Come Up With a Name for Your Company
Before creating an LLC, decide on the name. It must meet all state requirements.
First of all, make sure that the title is not used and does not contain inappropriate vocabulary. You need to check to see if the registered LLCs have the name as your chosen title.
The name of the corporation should contain “LLC,” “L.L.C.,” “Limited Liability Company,” and other relevant abbreviations. Also, make sure that your company’s name does not contain the words “city,” “village,” and others. It is worth mentioning that you must renew your LLC’s registration annually.
Regardless of the number of members and owners, each LLC needs to determine who will be their registered agent. A registered agent is a person appointed by the company to handle all its documentation.
The registered agent is responsible for transferring all necessary information to other LLC members and owners and handling the paperwork. In this case, the registered agent can be a local or foreign agency or an individual.
Complete the Required Forms
Two types of forms must be filled out when creating an operating agreement: Articles of Organization and Certificate of Authority.
Articles of Organization is completed if the LLC is a domestic corporation. A Certificate of Authority is required for foreign companies. You can use our online software to fill out both types of forms.
Pay the Fee
For domestic and foreign companies, the fee is different, but the payment procedure is the same. Domestic companies must pay $100, while foreign companies must pay $225. If you are drafting the paper online, you can pay the fee online or mail the payment check.
Georgia LLC Operating Agreement
The creation of the operating agreement is another crucial step in registering your LLC. While not required, the operating agreement will help you clearly articulate your corporation’s structure and distribute rights and duties among all members and owners.
Get the EIN
The EIN is the Employer Identification Number required for an LLC that plans to conduct financial transactions on behalf of the corporation.
It is recommended to receive the EIN immediately after applying for registration of an LLC since you will not be able to hire employees without it. You can get the EIN online, and our form-building software will help you fill out the application.