Operating Agreement for LLC

The video tutorial explains the LOC agreement, likening it to corporate bylaws. It outlines the roles and responsibilities of member managers and managers, voting requirements, decision-making rights, and capital accounts for tax purposes. The tutorial concludes with a summary of the major provisions for operating an LLC.

What is the LOC agreement often compared to?

• The guidelines of a club

• The rules of a sports team

• The bylaws of a corporation

• The constitution of a country

In an LLC, who might have their roles and responsibilities outlined in the LOC agreement?

• Only the board of directors

• Only the managers

• Only the passive members

• Both member managers and managers

What does the LOC agreement specify between managers and passive members?

• Their vacation days

• Their salaries

• Their roles and responsibilities

• Their voting rights

What financial aspect does the LOC agreement include for tax purposes?

• The company's revenue

• The profit margin

• The capital account of members

• The annual budget

What does the LOC agreement determine regarding profits and losses?

• The allocation among members

• The percentage for external stakeholders

• The distribution among managers only

• The total amount for the company