Multi-Member Llc Operating Agreement
The difference between a multi-member member and a single LLC member is not as simple as it would seem to be. They would think that a multi-member LLC would be equivalent to a multi-ownership business and that a single LLC would be equivalent to an individual ownership business, but that is not always true. A single business owner may opt to create a multi-member LLC, while many people sometimes choose to start an individual business. Trading partners or investors in the first phase of an exciting business opportunity often do not see the possibility of further disagreement and the possible need to assert their respective rights, but to set the terms of operation of an LLC at an early stage clearly and explicitly in writing, protect the interests of all parties involved. Many difficult cases were decided on the basis of rules of delay or judicial interpretation of an ambiguous agreement that did not appear to reflect the wishes and objectives of the parties. Hello, Samantha, thank you for the kind words. And I`m glad our site was so helpful. Before I get into the theme managed by managers, I would just add a note on how to be the LLC organizer and keep your documentation in order. Since you form the LLC for your son, you will be the organizer of LLC and will sign the Articles of the Organization of California. Your son`s name is not in the statutes because California does not ask for the member`s information on this form. Thus, after you sign as an organizer and as an LLC, you can sign an LLC Organizer statement in Lieu of Organization Meeting, resign as an LLC organizer and appoint your son as a member. In addition, your son should sign an LLC operating contract. In terms of managing the administration of e.V.
Member-Managed, I think you could go both ways. You can choose that the LLC be managed as a manager in the statutes. Then sign a company agreement managed by managers, in which your son appoints you manager. After that, you are the only one empowered to engage the LLC in contracts and agreements. In other words, you will be the only one who can act on behalf of LLC. However, your son, who is a member, has the power to remove you as a manager because he is the only member (and does not need the agreement of other members, because there is none). However, I think a simpler option is only a member-run LLC, where your son is known as a member of management. It has full authority and the right to engage the LLC in contracts and agreements. However, you can simply be a “consultant” or an independent contractor and you are doing what you are already doing.
Supervise and manage until your son has enough experience and maturity to take care of himself.