All statutes allow an LLC to adopt a business agreement and give full strength and effect to the operating contract. The enterprise agreement will only apply to those who are parties to the agreement. It is therefore extremely important that all members of an LLC sign the enterprise agreement. A limited liability company must be registered in the relevant jurisdiction. This will be achieved by preparing and submitting a document called „Statutes.“ The statutes must comply with the court`s reporting obligations. All states have a blank copy of the statutes to download from the state`s website. The operating contract is a separate document and an agreement between the owners of LLC. The enterprise agreement sets out the conditions under which owners will interact as members of the LLC. The operating contract is not subject to the competent court. 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 that do not sign an enterprise agreement are covered by the standard rules established by the states. In this case, the rules imposed by the state will be very general and may not be correct for all companies. For example, in the absence of an enterprise agreement, some states may decide that all profits of an LLC are shared equally by each partner, regardless of the capital contribution of each party. An agreement can also protect partners from personal liability when it acts as an individual company or as a partnership. Other states may have similar requirements. Check with your state`s department of affairs (usually in the Secretary of State`s office) to make sure you meet all legal requirements for an enterprise agreement. An enterprise agreement may also contain all the other elements that you deem necessary to operate and protect the rights of the company and its owners. An enterprise agreement (status) is an internal document that defines how entrepreneurs deal with each other professionally, while the statutes (constituting act) are a public document that legally establishes a business as a capital company. Together, these documents help shape the legal framework of your organization. Read on to learn more about what should be included in your LLC operating contract.