Hey folks, make sure to check the site for most up-to-date information: www.llcuniversity.com/operating-agreement/. Or select your state and start forming your LLC with our free guides: www.llcuniversity.com/
Hi. I want to know that since I'm a non us resident and have an LLC in US, I wouldn't be liable to pay taxes to the us government as long as I don't have someone in the US exclusively working for me(an employee working for me exclusively) Am I assuming it right?..
You saved me over $1000. I went to open a business account and operating agreement was one of the requirements. I am very fortunate to have come across your channel and may God bless your endevours as you continue to be of service to others.
That is so great to hear! Happy we could put the $1,000 back into your pocket for better use ;) Thank you for the kind words, and best wishes to you as well Nectarios!
@andrew-isac You keep the copy internally for yourself. In some cases a bank may ask for a copy when You're opening a business bank account but this document is internally to how your business is operated, how finances/shares are handled and who the members are.
Thanks so much Bob! I appreciate you! Check out our website too (a lot more stuff there). Or just toss "LLC University" into any of your LLC-related Google searches ;) We cover a lot of ground.
This was SO helpful. A lot of "free" services really seemed to over complicate this process, and wanted credit card information! Thank you for making it SO SIMPLE!
I am so grateful to have found your video! I was surely stressing over having to figure this out on my own. You are a God-send and many blessings to you!
You're very welcome! Happy we could help. If you have any questions you are searching in google, just add "llc university" in your search. We have tons of helpful articles and instructions on our website too. Hope that helps.
I am working on a certification. I downloaded your template, pulled up your tutorial, and let you talk me through this step-by-step! I sooo appreciate your sharing this vital information! God Bless Your Business!
I know you received a lot of thankful comments, but I am so grateful for your help. I have been wantching RUclips for years but never leave a single comment. Your kindness deserves bigggg thumbs up👍👍👍👍👍. Keep the good work and wish you good luck, wealthy and healthy at all time.
@@llcuniversity no seriously THANK YOU. You saved me a lot of money. I just opened my first business account in the first thing they asked for is guess what.... My Operating agreement 😀🤝. I got approved with no questions asked. Thank you again
Information was wonderful, thank you! Most impressive part, seeing that you still respond to comments years after the production of this video. It really speaks to your sincerity. Great work.
Thank you so much, very well explained, don't stop doing this great videos. you deserve millions of subscribers , continue with this channel . thank you!
Thank you soooooooooo much! I have been watching your videos ALL DAY, and they've helped a bunch! I am going to take the leap of beginning my business and feel so much more confident after watching! Thanks!
Thank you so much Matt. Your website and videos have helped me clarify what needs to be done to create an LLC. It's already stressful enough to be opening a business and trying to save money in doing so, but your videos/info/templates are a godsend. Please keep up the good work!!
@@evanahenri978 - Hi Evana, we recommend calling 5-7 (after doing research online) and asking them all the same set of questions. That usually leads to patterns where you can see if you get the same answers. Also, you will intuitively lean towards working with one or two of them. Hope that helps.
Thank you! With little research (to understand the concept) I was able to create a partnership LLC with IRA and IRA owner and external manager to be compliant with IRS non-prohibited party clause. Your template was barely changed and it worked! I don't know how much exactly I saved cause 3 lawyers have not returned my calls to set one up, oh well, my gain!
Wow, that is impressive! Glad you got it sorted. We hope to have more content on our website in the future regarding LLC/IRAs. Would you be willing to email us the template you created? No worries if you'd rather not. Thanks.
@@llcuniversity hey I am a single member LLC, just formed a few days ago. For the contribution section, how much will I put for that? That is the only part I didn't get in this video. Thanks for the amazing info 🙏
@@DThornDigital - You can enter whatever you'd like. We recommend putting in enough to get your business started. We have more information here: www.llcuniversity.com/money/llc-capital-contributions/
Apologies, this form is for member-managed LLCs. Check this link for a manager-managed LLC Operating Agreement: www.northwestregisteredagent.com/manager-managed-llc-operating-agreement.html
Great video, thank you very much! How would I add a Living Trust into Operating Agreement? Meaning if something happens to me, sole proprietorship, then I want to make sure it goes through my Living Trust.
Hey Loc, while you can contribute property in exchange for LLC Membership Interest, you'll want to check with an accountant on that. And for estate planning, if you form a Trust, you can then assign/transfer 100% of your LLC Membership Interest from yourself to your Trust. Said another way, the Trust becomes the 100% LLC Member.
Thanks so much for all the helpful information! Question... Can someone select the "accrual" method of accounting instead of "cash?" If so, what are the benefits of using the "cash" method vs. "accrual" for accounting treatment?
You're welcome Eduard. Yes, you can certainly make any changes you need. The cash method is just more common in the context of small business owners. Too long of an answer to spell out here, but check out this video: ruclips.net/video/KcTZdXpaVOU/видео.html
Your video is a life saver. It translates a daunting task to a simple procedures to follow. I'm little unsure about the date to fill in the OA form. If the LLC is formed in the middle of the year, do I fill in the exact date of the LLC formation for all the dates space and still use the calendar year for Tax Year and Accounting Method?
Thanks for the kind words, glad it was helpful! The date at the top should be the effective date (the date the LLC was approved by the state). And yes, you can still use the calendar year for taxes and the cash method for accounting (the most common methods), but you do not have to. If you have questions about these, there are long-form videos on youtube, or you can phone a few accountants. Hope that helps!
Hi Mat, I JUST SUBSCRIBED....YEAAAA!!! Thank you so much for such valuable information - PRICELESS...YOU ARE APPRECIATED even now in 2022 :-D @LLC University
Hey! I had a quick question. For section 4 the registered office and agent - is it fine to just use yourself and your home address? We're registering a media company so it's mostly online and don't have a real address to use besides home. Also do I need to include and phone number or email or anything else in this section? thanks so much for the video and template!! its really helpful
Thank you! You get an EIN for your LLC after your LLC is approved by the state. We have a video on our channel: ruclips.net/video/K0aFWEsnk7Q/видео.html. If you visit our website though (llcuniversity.com/) and choose the state, you'll find far better instructions. Hope that helps!
Hi Matt, thank you so much for this guide, I can’t tell you how helpful it is! If I needed to add a business address to this document, would you recommend just adding a line in the preliminary provisions?
Hi Michael, the effective date would be the date the LLC went into existence. This is most likely on your Articles of Organization (or Certificate of Organization or Certificate of Formation). And it's also most likely the date the LLC was approved by the state. Hope that helps.
Hi Zira, by default, the profits will be split proportional to the ownership percentages. When you say salary, do you mean W2 employee salary? If so, that is not allowed in default LLC taxation. That only applies if the LLC elects to be taxed as an S-Corporation or C-Corporation. Are you referring to W2 or just how to take money out of the business?
Thank you for this information! If I live outside the US but im the only member of the LLC I have to use as my adress the same of the LLC inside US? Or do I have to put mine in another country? Thanks
Thank You for this video and for the Operating Agreement. I noticed it says member managed operating agreement at the top, do I change it to single member managed if only one person or is it fine like it is?
Hi Jonté, you're welcome! You can leave the title as-is or change it if you prefer. It doesn't make a technical difference. But simply being the only Member that signs and having 100%, that makes it a Single-Member LLC that is Member-managed. Hope that helps :)
Should the font on the entries be left as bold? Perhaps makes it easier to identify the information on the document. Or is this only for illustration purposes of the video? It looks kind of funny to leave it in bold. Or perhaps it doesn't even matter since its mostly an internal document 🤔. Great informative video!
It's actually a completely different Operating Agreement. If you do a search on our website, you'll find it. Might be easier to just google search "LLC University Manager-Managed Operating Agreement" and you'll be able to download it. Hope that helps.
Thanks for the very helpful information. I have one question, my wife started her Life and Health Insurance business a couple of years ago. She did not establish an LLC at that time, we are now in the process of doing so now. Should we state the start date on the Operating Agreement?
Hi Jose, you're welcome :) The start date listed in the Operating Agreement should match the date your LLC becomes effective... this will be the date it is stamped and approved by the state. Hope that helps.
Thank you so much for putting this video. I have a question, if its a husband and wife business does it needs to be a multi-level LLC or can it be a regular LLC and i can add extra members
Hi Maria, if there are 2 members who are husband and wife in a non-community property state, then the LLC will by default be a Multi-Member LLC. There is no other option. If there are two members who are a husband and wife in a community property state, they have the option (but not the requirement) to have the LLC taxed as a Single-Member LLC. More info on that here: www.llcuniversity.com/irs/qualified-joint-venture-husband-wife-llc/ However, if a husband and wife add an additional Member or Members, the LLC cannot be taxed as a Qualified Joint Venture. It would be a Multi-Member LLC. Hope that helps :)
I enjoyed your video it was very helpful. If I started off as a sole proprietor with a DBA and plan to still use the DBA to form my LLC what date would I enter on the operating agreement? Would it still be the date the LLC was approved by the Secretary of State. When you enter the money contributed to the LLC and it's the same money earned as a sole prop. do I enter that amount or $100?
I'm not sure what you mean by "plan to still use the DBA to form my LLC". This is not the proper way to use these words and verbs. Can you re-phrase/explain another way? Your DBA is a fictitious name that represents you as a Sole Proprietorship. The date on the Operating Agreement should be the date the LLC is approved. You should enter the same amount of your initial deposit when you open the bank account for your LLC. Hope that helps.
LLC University thank you. The name I have for my DBA is the same name I will use for my LLC as its also available....I will just need to add LLC after the name. For the initial deposit I have already collected funds as a sole proprietor so when I switch to the LLC do I enter the funds from the sole proprietor as my initial deposit? If i changed to an LLC right now would I have to file multiple tax forms for the 2017 calendar year or should I wait until the beginning of 2018 to switch over? If the answer is switch next year, how would I setup an owner draw under the sole proprietor to pay myself?
Yes, you can just add "LLC" to the end of the current name, but do keep in mind, that technically it's a completely different entity. The money you made in the Sole Proprietorship is irrelevant to the LLC and its bank account. You're in essence stopping the operating of your Sole Proprietorship and starting an LLC. So whatever money you deposit into the LLC's bank account should match your capital contribution in your Operating Agreement. Yes, you'd file the 2017 tax year as part Sole Proprietorship and part LLC (taxed as an Sole Proprietorship)... so you'd likely have a new Schedule C and mark the Sole Proprietorship one as "final return". I highly recommend working with an accountant on this though.
Hi Nanii, if you've already formed your LLC, then you are likely the Registered Agent for your LLC (so you can just enter your name and address). A Registered Agent can be a person or company. A lot of people think a Commercial Registered Agent (a 3rd party company you hire) is the same thing as a Registered Agent. It's not. Hope that helps.
@@llcuniversity thank you! But my business is an online business which means that when I filed my articles of organization I used my home address to do so, wouldn’t that mean I’m using my business address as my registered agent? Which is not allowed right
@Nanii J - Hi Nanii, it depends on the state where you formed your LLC. Some states ask for a Registered Agent address and additional addresses (ex: Principal Office address, Members/Managers address, etc). And a few states just ask for a Registered Agent address (although rare). What state is your LLC formed in? If you review your LLC paperwork, my guess is that your name and address are listed as the Registered Agent... and your address is also listed in other fields too. Hope that helps.
Hello, the video it is very helpful, you mention to have an LLC in the operating agreement in this case will be Corporation but the company has an LLC sole mbr now do we keep the LLC and create a new corporation and use the LLC we have as dba?
Thank you so much for this video!! This is a great explanation! I have one question about this document. What does a registered agent mean?? Who do I need to find to sign on that area??
You're very welcome Maiv! We have a video on this page which explains what an LLC Registered Agent is: www.llcuniversity.com/llc-registered-agent/. Hope that helps :)
Hello! Thanks for the great info and free template. If I have a multi-member LLC that's going to be taxed as an S-Corp (through Form 2553), do I still put partnership in the blank on Part III. Tax and Financial Provisions or should I put S-Corp?
Hey Ashely, you're very welcome. In that case, you can list "S-Corporation". We have more info on LLCs taxed as S-Corps here: www.llcuniversity.com/irs/llc-taxed-as-s-corp-form-2553/
Hey folks, make sure to check the site for most up-to-date information: www.llcuniversity.com/operating-agreement/. Or select your state and start forming your LLC with our free guides: www.llcuniversity.com/
Thank you so much. This is very helpful
@@mamiepaul5389 - You're very welcome!
@@llcuniversity I just subbed and rang the bell, thank you so much.
@@6789uiop - Nice! You're very welcome :)
Hi. I want to know that since I'm a non us resident and have an LLC in US, I wouldn't be liable to pay taxes to the us government as long as I don't have someone in the US exclusively working for me(an employee working for me exclusively) Am I assuming it right?..
You saved me over $1000. I went to open a business account and operating agreement was one of the requirements. I am very fortunate to have come across your channel and may God bless your endevours as you continue to be of service to others.
That is so great to hear! Happy we could put the $1,000 back into your pocket for better use ;) Thank you for the kind words, and best wishes to you as well Nectarios!
Do we just keep a copy of it for ourselves or does it have to be registered somewhere ! In state or county or somewhere
@andrew-isac You keep the copy internally for yourself. In some cases a bank may ask for a copy when You're opening a business bank account but this document is internally to how your business is operated, how finances/shares are handled and who the members are.
Just when I thought I would need to hire someone to develop our LLC Operating Agreement I wan across your channel. Liked and subscribed!
Thanks so much Bob! I appreciate you! Check out our website too (a lot more stuff there). Or just toss "LLC University" into any of your LLC-related Google searches ;) We cover a lot of ground.
People like you helping others is what we need in this world. Thank you much for the help.
Pete, thank you so much! Really appreciate that :)
This was SO helpful. A lot of "free" services really seemed to over complicate this process, and wanted credit card information! Thank you for making it SO SIMPLE!
You're very welcome Justin! Thanks for the awesome comment!
I'm looking at this video 5 years later and it's still relevant !
Yes sir!
I am so grateful to have found your video! I was surely stressing over having to figure this out on my own. You are a God-send and many blessings to you!
You're very welcome! Happy we could help. If you have any questions you are searching in google, just add "llc university" in your search. We have tons of helpful articles and instructions on our website too. Hope that helps.
I am working on a certification. I downloaded your template, pulled up your tutorial, and let you talk me through this step-by-step! I sooo appreciate your sharing this vital information! God Bless Your Business!
Hi Vanessa, you're very welcome! So glad we could help :)
Finally a workable , useable true template with out a fee at the end - thank you for a quick and easy video to follow through with !!!!
You're very welcome!
All your videos are very helpful I get a lot from your videos truly you are very generous person .God bless your Knowledge.
Thank you so much Esayas. I greatly appreciate your comment!
I know you received a lot of thankful comments, but I am so grateful for your help. I have been wantching RUclips for years but never leave a single comment. Your kindness deserves bigggg thumbs up👍👍👍👍👍. Keep the good work and wish you good luck, wealthy and healthy at all time.
Hi Joanna, your comment means so much!! Thank you, you are very kind. I'm so glad the videos have been so helpful :) I wish you all the best too!
We seriously need more people like you in the world. I instantly subscribe. Dude you are awesome seriously.
Wow, thank you so much! Very kind of you. You're very welcome :)
@@llcuniversity no seriously THANK YOU. You saved me a lot of money. I just opened my first business account in the first thing they asked for is guess what.... My Operating agreement 😀🤝. I got approved with no questions asked. Thank you again
@@KingN3y0VL4 - You're very welcome Neno!! Heck yeah. That's super awesome. You're super duper welcome :-)
This content is priceless! Thank you so much for your contribution to the people that needed it.
You're very welcome! Thanks so much for your awesome comment :)
Wow thanks for the massive amount of free LLC information in this short 13 minute video!!!
You are very welcome Luis! Thanks :)
Thanks! God bless!
Thanks so much Albert! You're very welcome :)
I don't know really how to thank you. You're so helpful and logic. Thanks for your help and everything you share. Appreciated!
You're very welcome! :)
Thank you for much Sir! for explaining everything Professionally, May God Bless you!
You're very welcome! Glad it was helpful.
I have had more help with your website than i have with every person i have spoken with combined!
Hey Mega, super awesome to hear!! Glad we could help :)
Thanks so much for your guidance. I'd like to thank you for making this so simple for those of us that struggle with heavy wording.
Hi Debra, you're very welcome :) I really appreciate you noticing and the kind words! Let me know if you run into any other questions.
Information was wonderful, thank you! Most impressive part, seeing that you still respond to comments years after the production of this video. It really speaks to your sincerity. Great work.
Hey CC, thanks so much for your awesome comment! You're very welcome :)
I really appreciate that this was free to print! Subscribed just because of that!
You're very welcome Kris! Thanks!
Thank you for such great services you provided me. Even better for free. I like how you mentioned blue or blank ink. Wish you all the best.
You're very welcome Angel! Hey, the details matter lol ;)
Thank you sir, you have saved me $600...
You're very welcome. That's awesome to hear!
Thank you so much for putting these videos out there!! I can't even say helpfull they are!!
You're very welcome! Thank you for the lovely comment :)
Incredibly helpful! Thank you so much for walking us through this process!
So glad to hear! You're very welcome!
You saved me quite a bit of money and time. This was so simple and straightforward. Thank you so much!
So great to hear! You're very welcome :)
You are the best! this is the best guidance RUclips channel at all. Thank you very much.
Thank you Wender! Appreciate that!!
Thanks for posting these videos and thanks for taking the time today to respond to my question by email. Your generosity is much appreciated!
You're very welcome Carol! Thank you for the kind words :)
Thank you so much, very well explained, don't stop doing this great videos. you deserve millions of subscribers , continue with this channel . thank you!
You're very welcome! Thanks so much!! We very much appreciate the kind words :)
Your videos are lifesavers! You've made things so seamless. Thank you for your help in what is a daunting process.
So awesome to hear! You're very welcome :)
Thanks!
You're very welcome Scott. Thank you!
Sooooo very detailed, thorough and extremely helpful. You just made this really easy! Thank you!!!!!
You're sooo welcome! Happy to help :)
Thank you soooooooooo much! I have been watching your videos ALL DAY, and they've helped a bunch! I am going to take the leap of beginning my business and feel so much more confident after watching! Thanks!
Hey Nichole! You're very welcome :) Congrats! So glad we could help!
This was too easy to understanding!! Thank you so much for your help, Matt! You rock! 🎉🎉
You're SO welcome! Thanks for the kind words :)
Very much appreciated, you definetvely saved time and money. I just need a member-managed Operating agreetment. Cheers from Canada
You're very welcome!
Thank yuuuu. I hope it still help 8 years later
It's still rock solid 💪You're welcome!
Like and subscribed 👍🏼👍🏼👍🏼
@@alalgue Thanks! :)
This Video saved me time,money, and energy! Thank you so much!!
You're very welcome DeVon!
Thank you so much Matt. Your website and videos have helped me clarify what needs to be done to create an LLC. It's already stressful enough to be opening a business and trying to save money in doing so, but your videos/info/templates are a godsend. Please keep up the good work!!
You're super welcome! Will do. Thank you very much :)
Very grateful to have found your video and channel. Great teacher who provides excellent content. Thank you!
You're very welcome Evana! Thank you :)
@@llcuniversity Do you have any advice/resources on how to look for the right trademark attorney? Thanks!
@@evanahenri978 - Hi Evana, we recommend calling 5-7 (after doing research online) and asking them all the same set of questions. That usually leads to patterns where you can see if you get the same answers. Also, you will intuitively lean towards working with one or two of them. Hope that helps.
@@llcuniversity Thank you!
Great Thank you. My Registered agent had a 16 page Operating Agreement and the one you provided was cleaner, short, and sweet. Thank you again!
You're very welcome! Those long ones (while often comprehensive), can be quite overwhelming to go through and understand.
Just subscribed. I am in process of making an LLC operating agreement…
Thank you for this video.
You're very welcome!
Made a seemingly complicated matter super simple and effortless. Thank you!
You're welcome Daniel! Thank you :)
THANX for this! Helped me out in a crunch with total calm.
You're welcome Scott. Glad we could help :)
Thank you! With little research (to understand the concept) I was able to create a partnership LLC with IRA and IRA owner and external manager to be compliant with IRS non-prohibited party clause. Your template was barely changed and it worked! I don't know how much exactly I saved cause 3 lawyers have not returned my calls to set one up, oh well, my gain!
Wow, that is impressive! Glad you got it sorted. We hope to have more content on our website in the future regarding LLC/IRAs. Would you be willing to email us the template you created? No worries if you'd rather not. Thanks.
@@llcuniversity I definitely will tonight, after all it's thanks to you!
@@marcin97 - Awesome, you rock! Happy we could help ;-)
@@llcuniversity sent
You rock! Thanks.
You changed my life❤️
Wow! You're kind :)
Thank you so much for making this video and the word doc. I'm a single member and still brand new to business, this was incredibly helpful.
You're very welcome Ruby! So glad we could help :)
Great job, you make your viewers feel as though we can do anything in 13 minutes
Awesome! Thanks for the nice compliment Christina :)
Thank u so much, a guy was charging 400 for this...thank u..
You're very welcome Kou!
Thank you so much! Saved me lots of time (and money).
You're very welcome! ;-)
Thank you so much for sharing your knowledge, May Gd bless you. You were very instrumental., clear and to the point. You are terrific.
You're very welcome Eli! Thank you for the kind message :)
@@llcuniversity hey I am a single member LLC, just formed a few days ago. For the contribution section, how much will I put for that? That is the only part I didn't get in this video. Thanks for the amazing info 🙏
@@DThornDigital - You can enter whatever you'd like. We recommend putting in enough to get your business started. We have more information here: www.llcuniversity.com/money/llc-capital-contributions/
This has been extremely useful. I appreciate the step by step process. Really appreciate it.
You're very welcome Rosario!
GOD BLESS YOU & THE USA, THANK YOU... 🙏🏿🇺🇲💯
You're very welcome :) Thank you!!
Thank you for this, it helped tremendously. Really appreciate you taking the time to do this as well as having a pdf for all to use.
You're very welcome!
Tremendously helpful. Thanks again. Couldn’t have done it without you.
You're very welcome Jamie!
Can I use this same template for a "Manager-Managed" LLC?
Apologies, this form is for member-managed LLCs. Check this link for a manager-managed LLC Operating Agreement: www.northwestregisteredagent.com/manager-managed-llc-operating-agreement.html
Thank you, I wish you an unlimited abundance of prosperity
Oh, heck yes!! Thank you Chrissy! And you're very welcome :)
Great video, thank you very much! How would I add a Living Trust into Operating Agreement? Meaning if something happens to me, sole proprietorship, then I want to make sure it goes through my Living Trust.
Also if the LLC is for rental property, then what do you suggest I put in for "contribution", the property value?
Hey Loc, while you can contribute property in exchange for LLC Membership Interest, you'll want to check with an accountant on that. And for estate planning, if you form a Trust, you can then assign/transfer 100% of your LLC Membership Interest from yourself to your Trust. Said another way, the Trust becomes the 100% LLC Member.
Thank you so much for this video. It really saved me.
You're very welcome Brandon :)
Thank you so much!!!!! You saved me alot of money!!!!!! Thank yo so much!!!!!!
You're very welcome! yay! So awesome to hear :)
Thanks so much for all the helpful information! Question... Can someone select the "accrual" method of accounting instead of "cash?" If so, what are the benefits of using the "cash" method vs. "accrual" for accounting treatment?
You're welcome Eduard. Yes, you can certainly make any changes you need. The cash method is just more common in the context of small business owners. Too long of an answer to spell out here, but check out this video: ruclips.net/video/KcTZdXpaVOU/видео.html
Your video is a life saver. It translates a daunting task to a simple procedures to follow. I'm little unsure about the date to fill in the OA form. If the LLC is formed in the middle of the year, do I fill in the exact date of the LLC formation for all the dates space and still use the calendar year for Tax Year and Accounting Method?
Thanks for the kind words, glad it was helpful! The date at the top should be the effective date (the date the LLC was approved by the state). And yes, you can still use the calendar year for taxes and the cash method for accounting (the most common methods), but you do not have to. If you have questions about these, there are long-form videos on youtube, or you can phone a few accountants. Hope that helps!
Hi Mat, I JUST SUBSCRIBED....YEAAAA!!! Thank you so much for such valuable information - PRICELESS...YOU ARE APPRECIATED even now in 2022 :-D @LLC University
You're SUPER welcome Racquel!! Thank you!!
You guys killed it. Thank you thank you!
Heck yea!! Thanks again Christina, you rock!
This was very helpful. You must be a teacher.
Why thank you! Not officially, but I've always enjoyed teaching and communication. Thank you for the kind words :)
Wow, thank you so much! This was beyond helpful!
You're very welcome Alley!
Thank you very much for this!!! Saved me a lot and you made it easy to understand.
You are very welcome Michelle! So happy to hear :)
Hey! I had a quick question. For section 4 the registered office and agent - is it fine to just use yourself and your home address? We're registering a media company so it's mostly online and don't have a real address to use besides home. Also do I need to include and phone number or email or anything else in this section? thanks so much for the video and template!! its really helpful
Yes, you can list yourself. And no, no phone number or email is needed (but you can certainly add it if you want). And you're very welcome!
Thank you for this information . It's what I needed.
Glad it was helpful Linda!
You are very helpful and a very easy step by step tutorial. You nailed it. My question is when and how do we set up the EIN?
Thank you! You get an EIN for your LLC after your LLC is approved by the state. We have a video on our channel: ruclips.net/video/K0aFWEsnk7Q/видео.html. If you visit our website though (llcuniversity.com/) and choose the state, you'll find far better instructions. Hope that helps!
Thanks for the step by step what a life saver thanks
You're welcome Rayfus!
Thank you for this video!!! Clutch!!!👏👏👏
Heck yeah! You're welcome :)
Awesomely done and most helpful. Thank you!
You're super welcome!
I thank you for your information you made it very easy to learn Jose
You're very welcome Jose!
Super helpful, thank you! Do you have a template to amend the OA to add another member and change the llc’s name/purpose?
You're welcome. Apologies, but not at this time.
Thank you so much for putting these videos out there!
You're very welcome Christian!
Wow!! Thank you very much Matt. You are a genius! Great job! 👍👍
Thank you Julie! You're very welcome :)
Hi Matt, thank you so much for this guide, I can’t tell you how helpful it is! If I needed to add a business address to this document, would you recommend just adding a line in the preliminary provisions?
You're very welcome! And yes, certainly, you can stick it anywhere you'd like in the Operating Agreement.
Since this does not need to filed I assume the effective date is flexible if you add members later
Hi Michael, the effective date would be the date the LLC went into existence. This is most likely on your Articles of Organization (or Certificate of Organization or Certificate of Formation). And it's also most likely the date the LLC was approved by the state. Hope that helps.
Where would you include the profit splits and salary to be paid under (8) Allocation and Distribution of Cash to Members?
Hi Zira, by default, the profits will be split proportional to the ownership percentages. When you say salary, do you mean W2 employee salary? If so, that is not allowed in default LLC taxation. That only applies if the LLC elects to be taxed as an S-Corporation or C-Corporation. Are you referring to W2 or just how to take money out of the business?
Thank you so much for this. You were thorough and to the point.
You're welcome MH! Glad it was helpful :)
Thank you so much. You are a lifesaver😁
You're very welcome Anahi!
THIS WAS A HUGE HELP! THANK YOU!!!
You're very welcome Markia! :)
Thank you for this information! If I live outside the US but im the only member of the LLC I have to use as my adress the same of the LLC inside US? Or do I have to put mine in another country? Thanks
Hi Maria, you're very welcome. For the Operating Agreement, you can use either address you want. It's not that important which one it is.
Thank you so much for such well made and helpful videos, straight to the point and clear to allow, thank you!
You're very welcome Nora :) Thanks for your awesome comment!
Thank You for this video and for the Operating Agreement. I noticed it says member managed operating agreement at the top, do I change it to single member managed if only one person or is it fine like it is?
Hi Jonté, you're welcome! You can leave the title as-is or change it if you prefer. It doesn't make a technical difference. But simply being the only Member that signs and having 100%, that makes it a Single-Member LLC that is Member-managed. Hope that helps :)
I like your video too, make it simple, I’m recently frustrated about the operating agreement buy sell provisions
Thanks Yali, glad it was helpful.
Should the font on the entries be left as bold? Perhaps makes it easier to identify the information on the document. Or is this only for illustration purposes of the video? It looks kind of funny to leave it in bold. Or perhaps it doesn't even matter since its mostly an internal document 🤔. Great informative video!
It's totally up to you. It can be bold or regular :) Thanks!
8:27 What would you put for a manger managed LLC?
It's actually a completely different Operating Agreement. If you do a search on our website, you'll find it. Might be easier to just google search "LLC University Manager-Managed Operating Agreement" and you'll be able to download it. Hope that helps.
Thanks for the very helpful information. I have one question, my wife started her Life and Health Insurance business a couple of years ago. She did not establish an LLC at that time, we are now in the process of doing so now. Should we state the start date on the Operating Agreement?
Hi Jose, you're welcome :) The start date listed in the Operating Agreement should match the date your LLC becomes effective... this will be the date it is stamped and approved by the state. Hope that helps.
This is very helpful Thank you so much!
You're very welcome!
This was exactly what I was looking for and in need of so thank you!
Awesome! You're very welcome :)
Thank you so much for putting this video. I have a question, if its a husband and wife business does it needs to be a multi-level LLC or can it be a regular LLC and i can add extra members
Hi Maria, if there are 2 members who are husband and wife in a non-community property state, then the LLC will by default be a Multi-Member LLC. There is no other option.
If there are two members who are a husband and wife in a community property state, they have the option (but not the requirement) to have the LLC taxed as a Single-Member LLC. More info on that here: www.llcuniversity.com/irs/qualified-joint-venture-husband-wife-llc/
However, if a husband and wife add an additional Member or Members, the LLC cannot be taxed as a Qualified Joint Venture. It would be a Multi-Member LLC. Hope that helps :)
I enjoyed your video it was very helpful. If I started off as a sole proprietor with a DBA and plan to still use the DBA to form my LLC what date would I enter on the operating agreement? Would it still be the date the LLC was approved by the Secretary of State. When you enter the money contributed to the LLC and it's the same money earned as a sole prop. do I enter that amount or $100?
I'm not sure what you mean by "plan to still use the DBA to form my LLC". This is not the proper way to use these words and verbs. Can you re-phrase/explain another way? Your DBA is a fictitious name that represents you as a Sole Proprietorship.
The date on the Operating Agreement should be the date the LLC is approved. You should enter the same amount of your initial deposit when you open the bank account for your LLC. Hope that helps.
LLC University thank you. The name I have for my DBA is the same name I will use for my LLC as its also available....I will just need to add LLC after the name. For the initial deposit I have already collected funds as a sole proprietor so when I switch to the LLC do I enter the funds from the sole proprietor as my initial deposit? If i changed to an LLC right now would I have to file multiple tax forms for the 2017 calendar year or should I wait until the beginning of 2018 to switch over? If the answer is switch next year, how would I setup an owner draw under the sole proprietor to pay myself?
Yes, you can just add "LLC" to the end of the current name, but do keep in mind, that technically it's a completely different entity. The money you made in the Sole Proprietorship is irrelevant to the LLC and its bank account. You're in essence stopping the operating of your Sole Proprietorship and starting an LLC. So whatever money you deposit into the LLC's bank account should match your capital contribution in your Operating Agreement. Yes, you'd file the 2017 tax year as part Sole Proprietorship and part LLC (taxed as an Sole Proprietorship)... so you'd likely have a new Schedule C and mark the Sole Proprietorship one as "final return". I highly recommend working with an accountant on this though.
thank you for this information, I would like to ask if I dont have a registered agent as of yet, can I leave it blank?
Hi Nanii, if you've already formed your LLC, then you are likely the Registered Agent for your LLC (so you can just enter your name and address). A Registered Agent can be a person or company. A lot of people think a Commercial Registered Agent (a 3rd party company you hire) is the same thing as a Registered Agent. It's not. Hope that helps.
@@llcuniversity thank you! But my business is an online business which means that when I filed my articles of organization I used my home address to do so, wouldn’t that mean I’m using my business address as my registered agent? Which is not allowed right
@Nanii J - Hi Nanii, it depends on the state where you formed your LLC. Some states ask for a Registered Agent address and additional addresses (ex: Principal Office address, Members/Managers address, etc). And a few states just ask for a Registered Agent address (although rare). What state is your LLC formed in? If you review your LLC paperwork, my guess is that your name and address are listed as the Registered Agent... and your address is also listed in other fields too. Hope that helps.
Hello, the video it is very helpful, you mention to have an LLC in the operating agreement in this case will be Corporation but the company has an LLC sole mbr now do we keep the LLC and create a new corporation and use the LLC we have as dba?
Can you rephrase this using more punctuation please. I can't understand the premise. I also don't understand the question. Thank you.
Very helpful step by step process. Thanks!
You're welcome Geetha!
Thank you so much for this helpful information. I wasn't sure how I was going to write this and I found your channel!!!!
You're very welcome! Feel free to stop by our site. We have a lot more resources there :) www.llcuniversity.com/learning-center/
Thank you so much for this video!! This is a great explanation!
I have one question about this document. What does a registered agent mean?? Who do I need to find to sign on that area??
You're very welcome Maiv! We have a video on this page which explains what an LLC Registered Agent is: www.llcuniversity.com/llc-registered-agent/. Hope that helps :)
This was great information. Filled mine out. Thank You all so much for the info.
You're very welcome Joel!
Hello! Thanks for the great info and free template. If I have a multi-member LLC that's going to be taxed as an S-Corp (through Form 2553), do I still put partnership in the blank on Part III. Tax and Financial Provisions or should I put S-Corp?
Hey Ashely, you're very welcome. In that case, you can list "S-Corporation". We have more info on LLCs taxed as S-Corps here: www.llcuniversity.com/irs/llc-taxed-as-s-corp-form-2553/