Having an operating agreement is an important step for any LLC in Tennessee with more than one member. Some important questions that need to be answered in an operating agreement are:
1) Names of Members
2) Percentage of Ownership
3) Titles and job descriptions of each. Job descriptions should include who makes what business decisions such as hiring, signing contracts, signing checks, etc.
4) List of what each member is bringing to the company (money, experience, connections, equipment, etc.)
5) Will there be a salary for each member? if so, how much?
6) How are profits handled? Split between members, reinvested in company? Is this done quarterly?
7) What happens if one member wants to but the other member(s) out?
Please contact me if your company either needs an operating agreement, or you would like to update your current agreement. The beginning of the year is a great time to review all of your company’s information, so don’t forget about the Bottorff Business Review.
Luke D. Bottorff
McNulty & Associates, PLLC