Your articles in the organization — the document you make with the state — do not say that you have it. It might mean you`re the registered agent, but that doesn`t mean you own it. This is what the enterprise agreement, among many other things. Let`s talk about other reasons. Normally, management decisions in an LLC are fairly informal, but there are times when a decision becomes so important or perhaps so controversial that a formal vote is required. This is the time to ensure that voting rights are clearly defined in your LLC enterprise agreement. This requires discussion of another rule: that a member who dies, is disabled, withdraws or ceases his interest in the LLC without the consent of other members, ceases to be a member of the LLC. In the case of an LLC, what happens with a single member if that member dies? You guessed it – the LLC has no members and is dissolved. This means that the estate administrator is invited to manage the affairs of the business by distributing all the assets (or selling them in cash) and returning the entire proceeds to the estate. Most people here are aware of how much a pain reduction can be, and there are simple strategies to avoid this result, but only if you have an enterprise agreement. Start now and establish your agreement in just a few minutes in line with our corporate agreement LLC model. Not exactly.
A.R.S. 29-732 stipulates that a member who sells all or part of his or her interest in an LLC is not exempt from liability to the company unless the enterprise agreement says otherwise (!). Instead, the accepting member would need the written consent of all members, or the person`s agent should actually be admitted as a member. Setting up an enterprise agreement will help you protect your limited liability status, avoid management and money misunderstandings, and ensure that your business complies with the rules you have chosen and is not required to comply with the standard rules set by the state in which your business is based. It is recommended that all LCs have enterprise agreements, even if you are the sole owner of the business. An enterprise agreement can not only contribute to the separation and formality discussed above, but also serve as a protection against unintended consequences if additional investors/owners are called too early without agreement.