Operating Agreements 101
When looking at a sample LLC operating agreement you will notice that one of the sections included in the LLC operating agreement example is the distributions of profits and losses. This section is in addition to the distributive share section within the LLC operating agreement form. The reason for this is that in your LLC operating agreement the distributions of profits and losses is going to address specific questions that the other section does not cover. This section in the LLC operating agreement is going to cover how much of the LLC’s allocated profits must be distributed to LLC members each year or will all of the allocated profits be put back in the business. You also want to address if the distributions of profits will be made on a regular basis or if the members can withdraw their share when needed.
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