If you create an LLC through legalZoom, you get a custom business agreement for your business at no additional cost. Creating an LLC on LegalZoom is simple and affordable. The process begins with filling out a simple questionnaire. We will create and send your documents and you will receive your final package. Imagine a more pessimistic scenario in which your LLC is sued by creditors and then receives membership interest. This section states that such an interest does not include rights to participate in the administration or operation of the LLC. Creditors would only receive distributions (and only until the debt is repaid). If you manage your SMLLC yourself, the company agreement determines who will take the lead if you cannot continue to do so. For example, a common provision in an enterprise agreement for an LLC, which is taxed as a partnership, would be for liquidation distributions to be made in accordance with positive balance of capital balances (before the rest is allocated by ownership shares). This or any other provision allowing priorities in the event of distribution would be contrary to the requirement of a single stock class. Ownership: Since you are the sole owner and member of your SMLLC, this part is simple. You should indicate that as a sole proprietor, you have all voting rights. This section should also make it clear that you have limited liability for LLC`s debts and liabilities.
(i.e. holding meetings, quorum requirements and minimum participation requirements).