The financial and administrative aspects of an LLC are defined in the enterprise agreement, including the LLC`s accounting policies, fiscal year, annual report details and more. If there are any changes or modifications to be made to this Agreement, ensure that there are sufficient rules so that no party can make changes without the agreement of the majority or all members. Hello, Samantha, thank you for the kind words. And I`m glad our site was so helpful. Before I deal with the theme Manager-managed vs. Member-managed, I would just like to add a note saying that she is the organizer LLC and that she keeps your documentation in order. Since you are the one making the LLC for your son, you are the organizer of the LLC and sign the Organization`s California Articles. Your son`s name is not on the organization`s by-articles because California does not require member information in this form. So, after signing as an organizer and approving the LLC, you can sign a statement from the LLC organizer instead of the organizing meeting, resign as an LLC organizer, and appoint your son as a member. In addition, your son should sign an LLC company agreement. When it comes to Manager-Managed vs Member-managed, I think you could go both ways.
You can choose to manage the LLC as a manager in the organization`s by-articles. Then sign a manager-managed company agreement in which your son appoints you as manager. Thereafter, you are the only one entitled to bind the LLC to contracts and agreements. In other words, only you will be able to act on behalf of the LLC. However, your son, who is a member, has the power to withdraw you as a manager, because he is the only member (and does not need the agreement of other members, since there is none). However, I think a simpler option is to simply create a member-managed LLC, where your son is known as a managing member. He has all the authority and right to bind the LLC to contracts and agreements. However, you can simply be a “consultant” or an independent contractor and do what you are already doing. Supervise and manage until your son has enough experience and maturity to take matters upon himself.
They could make such an agreement orally, but it is better to write it down in writing. And you could add that language to LLC`s corporate agreement. I hope this helps to clarify the situation a little more. If you`re creating an LLC with only one member, you might think you don`t need a company agreement. Think about it again – this is the key to legal and financial success. A corporate agreement also discusses whether a member can voluntarily withdraw from the LLC, whether it can compete with the LLC after withdrawal, how assets are distributed when the company dissolves, and how new members are admitted. Do you have any questions about establishing your agreement? Any advice or advice on how to offer to others? Of course, there are other ways to share the property. For example, in your business agreement, you could give 30 percent of your LLC`s ownership to a co-owner who only contributed 10 percent of the property to LLC. It`s never a happy place to meet. If you do not create an agreement, your LLC is subject to the LLC rules of fact in your country. This could lead to unfair divisions of profits, internal struggles, and a whole series of unpleasant problems.