Operating Agreement Template For S Corp In Georgia
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Georgia state law doesn't require you to have an operating agreement, but it does give “maximum effect” to freedom of contract, so a strong operating agreement can give you a lot of control over your LLC in this state.
The first step in creating your operating agreement involves determining whether you'll draft it yourself or hire an attorney to do it for you. If you have a single-member LLC, you may decide to create it on your own using a template.
An S Corporation operating agreement is a critical document outlining the rights, responsibilities, and expectations of shareholders, directors, and officers.
If you're forming—or have formed—an LLC in California, New York, Missouri, Maine, or Delaware, state laws require you to create an LLC Operating Agreement. But no matter what state you're in, it's always a good idea to create a formal agreement between LLC members.
Bylaws focus on the roles and responsibilities of the board of directors, officers, and shareholders. Operating Agreements focus on the roles and responsibilities of members and managers.
LLCs are required by law to have operating agreements. However, other entities, such as S-corporations, sole proprietorships, and partnerships, can also benefit from having operating agreements.
Unlike a partnership, which can take advantage of a Sec. 754 election to help a successor partner equalize her inside and outside basis, an S corporation has no similar option.
- Customization: An S Corporation operating agreement allows stakeholders to tailor the company's governance and decision-making procedures to suit their specific needs and objectives.
How to Create an S Corp in Georgia Choose a unique name for your Georgia limited liability company. Appoint a registered agent. File your Georgia LLC Articles of Organization. Create an operating agreemen. Register for your EIN Number. Apply for S Corp status with IRS Form 2553.
Starting an S Corp may sound intimidating, but anyone can do it with a computer and the right information. Creating a business structure and filing an S Corporation tax election requires filing business registration forms with your resident state's secretary of state office and the Internal Revenue Service (IRS).
