Mississippi Sample Limited Liability Company LLC Operating Agreement with company assets divided into ownership shares

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US-0689-WG
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Description

A Limited Liability Company (LLC) is a separate legal entity that can conduct business just like a corporation with many of the advantages of a partnership. It is taxed as a partnership. Its owners are called members and receive income from the LLC just as a partner would. There is no tax on the LLC entity itself. The members are not personally liable for the debts and obligations of the entity like partners would be. Basically, an LLC combines the tax advantages of a partnership with the limited liability feature of a corporation.


An LLC is formed by filing articles of organization with the secretary of state in the same type manner that articles of incorporation are filed. The articles must contain the name, purpose, duration, registered agent, and principle office of the LLC. The name of the LLC must contain the words Limited Liability Company or LLC. An LLC is a separate legal entity like a corporation.


Management of an LLC is vested in its members. An operating agreement is executed by the members and operates much the same way a partnership agreement operates. Profits and losses are shared according to the terms of the operating agreement.

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  • Preview Sample Limited Liability Company LLC Operating Agreement with company assets divided into ownership shares
  • Preview Sample Limited Liability Company LLC Operating Agreement with company assets divided into ownership shares
  • Preview Sample Limited Liability Company LLC Operating Agreement with company assets divided into ownership shares
  • Preview Sample Limited Liability Company LLC Operating Agreement with company assets divided into ownership shares
  • Preview Sample Limited Liability Company LLC Operating Agreement with company assets divided into ownership shares
  • Preview Sample Limited Liability Company LLC Operating Agreement with company assets divided into ownership shares
  • Preview Sample Limited Liability Company LLC Operating Agreement with company assets divided into ownership shares
  • Preview Sample Limited Liability Company LLC Operating Agreement with company assets divided into ownership shares
  • Preview Sample Limited Liability Company LLC Operating Agreement with company assets divided into ownership shares
  • Preview Sample Limited Liability Company LLC Operating Agreement with company assets divided into ownership shares

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FAQ

An operating agreement is a document specific to LLCs that outlines the ownership and operating procedures of the company. In contrast, a standard operating procedure (SOP) details specific processes for operational tasks within a company. While the Mississippi Sample Limited Liability Company LLC Operating Agreement with company assets divided into ownership shares governs the overall structure, SOPs manage day-to-day operations. Understanding both can enhance your LLC’s efficiency.

In most cases, the company will divide profits and losses based on ownership interests. A partner will receive shares of profits and losses depending on their financial contribution. For example, partner A has a 50% membership stake. Meanwhile, partner B has 30%, and partner C holds 20%.

Divide ownership of the LLC by calculating total cash investment by the members. Give each member an ownership stake equal to his cash investment. Four members contributing $25,000 apiece would each receive a 25 percent stake in the company.

An LLC may be owned by one person or many. It can also be owned by virtually any other organization, such as a corporation, another LLC, or a holding company. There are no restrictions on the number of members an LLC may have or their country of citizenship.

A limited liability company (LLC) cannot issue shares of stock. An LLC is a business entity structured to have either a single or multiple owners, who are referred to as the LLC's members.

A Mississippi LLC operating agreement is a binding legal document that controls the affairs of an LLC. The company's owners and managers are bound by the agreement.

Prepare an Operating AgreementAn LLC operating agreement is not required in Mississippi, but is highly advisable. This is an internal document that establishes how your LLC will be run. It is not filed with the state.

Divide ownership of the LLC by calculating total cash investment by the members. Give each member an ownership stake equal to his cash investment. Four members contributing $25,000 apiece would each receive a 25 percent stake in the company.

Members usually receive ownership percentages in proportion to their contributions of capital, but LLC members are free to divide up ownership in any way they wish. These contributions and percentage interests are an important part of your operating agreement.

With an LLC, you probably won't need to file updated paperwork with your state, but that depends on whether or not your original incorporation paperwork included the names and ownership percentages of your partners. If it does, you'll need to fill out an amendment with the new names and percentages.

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Mississippi Sample Limited Liability Company LLC Operating Agreement with company assets divided into ownership shares