 |
|
Ask a Lawyer -- LLCs
LLC Question 132
Question:
I have been allocated 10% of the company's profits in a new Florida LLC. How is the distribution of ownership defined in the LLC operating agreement? Does that need to be also reflected in the company's articles of organization as filed with the state of Florida?
Response: A couple of comments. First, ownership percentages (nor division of profits and losses) are NOT normally defined in articles of organization filed with the state. Normally, ownership percentage for voting purposes and percentages of allocation for profit and loss purposes are the same, but this is not necessarily so. An operating agreement can allocate profits and losses via formula that do not necessarily match up with ownership percentages.
"How is the distribution of ownership defined in the LLC operating agreement?" There is not a set formulation or wording for this. It should be specified in the LLC operating agreement. See MedLawPlus.com® Sample LLC Operating Agreement. I am guessing by your question that you do not have a written operating agreement for your LLC. Any LLC with more than one member needs an operating agreement in my opinion.
Submitted: 09/16/2007; Barry, Florida
Response: 09/16/2007; JJR
Add A Comment
|
|
Ask a Lawyer LLC Archives
DISCLAIMER
The above is provided for informational purposes only and is NOT to be relied upon as professional advice. The information presented on this site comes without any warranty of correctness and, therefore, should not be relied upon. This service is not a substitute for the advice of a professional. No attorney client relationship is created through use of this site.
|
|
 |
