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The two members, 'Kenneth A Wenger' and 'Hattie J Stamps', agree on how the LLC will be run, including membership rights, allocation of profits and losses, what to do with salaries and expenses, and other.
When an LLC intends to spell out certain rules and regulations to its members to ensure that they are not carried away by the flexibility of the organizational structure, it uses this corporation operating agreement for the purpose.
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Helpful Tips When Writing an LLC Operating Agreement. For this reason, both existing small businesses intending to convert and new businesses electing a C corporation structure should design a corporate agreement as a first step in. An LLC Operating Agreement defines how your company is to be run.
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