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Document type sign amendment to an llc operating agreement delaware fast

hello everyone and thank you for joining us today this is Michael Cooper with Harvard Business Services our webinar today is creating a Delaware LLC operating agreement we're going to get started in just a minute if you quick things to get to before we jump in what we want to start with as we always do is we don't we have some folks on the line from all over the world here in the US and plenty of other countries as well we'd love to have you to speak one second find your chat feature and just type in and let us know where you're from whether it's a state here in the US or country outside the US we just like to know who's attending and who we're talking to so president accident when you have a second in the meantime I'll just mention a couple other things one being that we definitely encourage your questions throughout this presentation feel free to type in questions as they come to you Mike who's going to be presenting will answer a lot of them as he goes anything that he can't get you right away we'll save them till the end and we'll have a Q&A session then we have an hour popped out for this presentation so you should have plenty of time I think we'll be able to move through material pretty quickly and have plenty of time for questions if you have them so feel free to ask whatever is on your mind and we will be recording this webinar and we will be distributing this lives in PDF format you will be receiving both of those things the recording and the slides in an email tomorrow so you can keep an eye out for that if you don't get it please contact us and we'll make sure you get what you need so I see that we've got some folks ringing in from in the US and Virginia California Tennessee some other places so welcome to everyone and we hope you enjoyed his presentation just a quick note before I turn things over to Mike just want to go over who we are we're Arbor Business Services we were founded in 1981 in Bloomington Delaware by Rick Bell this is a family-owned and operated company Mike Bell is going to be presenting here was named our president in January 1st of this year our headquarters is now in Lewes Delaware which is right on the Atlantic coast we have formed over 175,000 companies and we have over 75,000 current clients worldwide where Delaware registered agents and formation specialists we are a very customer focused company you'll see that in the reviews that we have online we offer free lifetime support we have low prices we have a very friendly staff who is always ready willing and able to help you with any questions you might have importantly we are not attorneys and we're not accountants so anything that you hear in this presentation today please don't take it as legal advice or as accounting advice we see clear professionals in those most fields if you do have questions that we can answer and lastly we are not affiliated with Harvard University despite carrying the Harvard name so with that being said I'm going to turn things over to Mike and he's going to start talking to you about the operating agreements hello and welcome to today's webinar thank you for joining us and taking some time out of your day we're going to go through a number of different slides about LLC operating grant Vincent what they mean to your company even if you are just the sole owner or whether you have multiple owners so we're going to get into the you know the real details of why it's important to have an operating agreement on what it means for the company in case there's you know any disputes or there's a lawsuit or myth there's and you know depths and the family or something of that nature so we're going to dive right into it and I'm going to take you guys there a little bit about the LLC and just a brief history of it here on this slide so limited liability companies were first established in the state of Wyoming in nine 77 in 1993 Delaware came up with the LLC Act which was approved by the Internal Revenue Service the IRS and became the new gold standard among LLC walls so now uh Delaware is known as the place to incorporate your LLC there is Wyoming there is Nevada there is other states out there that are you know much like Delaware in forming an LLC but the LLC more structure is much more favorable to the owners of the company and this is why over 60% of your fortune 500 companies along with the New York Stock Exchange and other businesses inquire about incorporating in Delaware so Delaware limited liability companies are extremely flexible and offering offer a custom internal company agreement now more commonly referred to as operating agreement which both establishes and governor governs the LLC a lot of people do it verbally a lot of people I think that or a handshake or something of that nature because a written operation agreement is very important for the company the operating agreement can create company structures that their unique situations perfectly there is no set standards when it comes to determining you know who is who in the company and things of that nature that's all determined internally we don't need to know about it enough neither does the state of Delaware so they all see is very flexible and it makes really easy for you to operate your business as you like okay so there's a number of different business structures for the LLC the LLC can be structured as a single member LLC which is individually owned by one person so there are provisions you can build into a single-member LLC operating agreement that protect the member beyond the liability protection outlined in the Delaware Code a legally executed LLC operating agreement becomes a very important member of the sole member of the LLC passes away because then the family then can determine exactly what they're going to do with the company and just helps eliminate a lot of confusion and frustration there is also the multi-member LLC it's either member manage or manager manage member manage is member means owner manager means they handle day-to-day operations and multi-member means that it's owned by multiple people much like a partnership in the case of a member manage LLC's the multi-member operating agreement typically puts the members themselves and charge the operation of the LLC and then as I said for the managers handle the day-to-day matter matters the LLC owner or owners may customize this document to sign specific unique responsibilities each member order require members to accept certain rights and responsibilities a disagreement is often used in family businesses joint ventures between companies and investment vehicles for groups of investors if manager manage LLC's the multi-member operating agreement establishes the operation of the company to be led by a single manager who is member selected there is also from the separate from the traditional type of LLC there is also the series LLC the series LLC is not well recognized by a lot of states and by a lot of attorneys nor the IRS but it is a entity that is available here in Delaware and it the provisions in Delaware will allow the or cease to be divided into separate and distinct sub s DS that make each sone control and manage separate assets have separate financial records and be protected from the financial condition of any of the other some entities or series there's no limit to the number of sub n teasing Delaware ll series LLC may contain so the series LLC is a little bit different from a traditional LLC but let's just give you a little bit of a background about the series LLC there has been a new type of entity that has just been recently established here in the state of Delaware it's called a register a series LLC and it is different from the series on LLC one being that you do have to register each individual series under the registered series LLC you do have to pay separate franchise tax for each registered series so you have to pay separate registered agencies so there's it's a it's a lot different with a series LLC you're paying one franchise tax per any number of series you have under those because those those series are not filed with the state of Delaware where's with a registered series LLC those individual companies underneath are registered with state of Delaware at their own separate file numbers have their own separate incorporation dates and are going to pay their own registered agencies and their own franchise tax here in the state of Delaware so more to come on the registered series LLC I think we'll be able to do a separate webinar on that down line when we get some more information on it and can really provide you some more information in detail about we do doesn't look like we have one question that came in and it's sable member can you pre-established a transfer to other member one more in a year's time I so the LLC operating agreement as I get more into it will explain you how everything can be drawn out the LLC operating agreement has no particular structure to it so you can determine how you are going to transfer it on downline I'm having it's a session plan if you're a family-owned business and things of that nature in the operating agreement so it is it can be drawn up exactly the way you want it and doesn't doesn't we be disclosed to the space Delaware in order Harvard Business Services so we're going to dive more into the operating agreement now I'm going to tell you about what is an operating agreement so according to the Delaware limited liability company Act section 18 - 101 a limited liability company agreement means any agreement whether referred to as a limited liability company agreement operating agreement or otherwise written oral or implied of the memo or members as to the affairs of a limited liability company and the conduct of its business typically the operating agreement is written by the member or members also known as the owners of the company and signed before a notary public with a copy of the notarized document provided for each member in short it sets forth the fundamental terms of an LLC's owner operation and management of the company on a daily basis so it is vitally important to have this operating degree so who needs an operating agreement well to answer that question every LLC should have an operating agreement whether you're single or multiple owners every company should have an operating agreement from the very beginning so what we do is incorporate or is we incorporate the business here in the state of Delaware you provide us at least one person's name you can provide us as many as you want of whom we as the corporator leasing the lld to until the successors are elected internally within the LLC operating agreement so when you're formally filing your company with a lot of people things that they need to give us the names of every single owner and what their percentage of ownership is and who they are on the company but neither Harvard Business Services nor the state of Delaware needs that information and that's what allows you to operate your business as you'd like and keep your information confidential here in the state of Delaware so it's another nice benefit of that the state of Delaware offers so the operating agreement has exceeded the official Constitution for the company and should be named internally by the company I does have legal standing should any disputes arise within the company okay so I previously just spoke a little bit about this but I'll go into more detail in the operating agreement on public record the operator is not on public records here in the state of Delaware there are other states that require the operating agreement on to be on file with with the state so your information is available for public record whereas with the state of Delaware they do not require the company's LLC operating agreement to be filed or made public i with the state of Delaware nor with Harvard Business Services the operating agreement can be written in any language and that's the beautiful part about is not having to be providing to the state of Delaware or to Harvard Business Services so if you are located out in the US and and you know you want to put it in your primary language you can do that and it does not have to be translated to English all right so a lot of people always contact us asking us about you know what needs to be done when you want to make changes to the ownership of the company or changes in the LLC operating agreement and because it's not filed with the state of Delaware and not filed not given to Harvard Business Services all changes are made in turtle within the LLC operating agreement agreement among many members of the company so if there's any changes in members and ownership changing official responsibilities of one or more members allocation of profits losses and/or expenses those are all changes that happen within the LLC operating agreement we don't need to know about it the state doesn't need to know about it but you do have to have consent of all your members and the company to make those changes so since a document is not filed publicly and the updates are also for internal record-keeping and do not need shared with us or with anyone outside of the LLC including the registered agent or the state of Delaware so it makes it really easy for you to make changes within the operating agreement for your company should anything arise where you need me changes a lot of people also ask well do I need a lawyer or to create an LLC operating through it so there's no official requirement that says that you need an attorney to create your LLC operating agreement but however Business Services does often recommend you to speak with an attorney to make sure you get professional legal advice about creating your operating agreement for protection of all members and to prevent a potential future conflict so by doing that you are you know protecting everybody in the company and everybody knows what their position is in the company everybody knows how the company is structured who you know who provided what as far as funds with I mean so speaking to an attorney is a really good really good thing to do when it comes to a draft in an operating agreement to make sure that all your eyes are dotted and all your T's are crossed and we also get the question well what should I include in my operating agreement you can include anything you want in your operating agreement operating agreement can be one page two pages three pages to give me a hundred pages if you want it to be most operating agreements are less than five pages I would say um usually some common inclusions are ownership interests economic rights and distributions management fiduciary duties raising additional capital you're looking to do that transfer of interest for the dissolution of the Commerce there are a number of other things that you can put in the LLC operating agreement but that's not up to us to determine that's up to you to determine because that documents immature is an internal document that's not required to be disclosed to us okay so I'm going to give you few examples here of how an LLC operating agreement typically may be structured with ownership ownership in an LLC is shown in percentages versus a corporation you have shares a stock that shows ownership so because there's no shares of stock in a corporate in an LLC I you have to have another way to show who owns what in the company and that is done through percentages so as you can see here by this example John Smith owns 40% of the company Mary Jones and 30 percent and Pat Thompson's 30 percent which equals 100% initial investment amounts and visits are also commonly included in your LLC operating agreement and it is best to use your language Fred details that are not obvious such as if one of the members does not have voting rights and company decisions based on their their ownership in the company so that's just a brief description of how the ownership would be shown in the LLC because you don't have shares of stock you're showing it through percentages another example might be putting in the LLC operating agreement might be showing the management responsibilities so if different members or managers will be in charge of specific aspects of the business this is typically included in the operating agreement just so everybody kno s whose role is what and you has responsibilities of what certain things so in this example you have John set these in charge of bookkeeping accounting and company finances Mary Jones does include of operations inventories and vendor relationships and Pat promises including it is in charge of sales marketing and business development excuse me usually not all job categories and functions are listed here only those for which one individual is primarily responsible again this you can write it up however you want to write it up this is just for an example and it's not required to be grown up this way you can draw it up however you like alright so another important aspect of a company is who has voting rights and when to hold means and things of that nature the formal corporate formalities such as holding annual meetings and minutes can all be eliminated within an LLC but you can add me and you can have you can distinguish who has votes within the company and the LLC operating agreement if you see that that's for your company so each LLC member shall have the rights call meeting the vote on import we can be called by any member on reasonable notice unless otherwise notice notice all LLC members are given an equal vote all matters votes will be decided based on that simple majority matters that will require unanimous vote would include sale of the company cancellation LLC adding or removing LLC members so this is traditional for every operating agreement and because you know these examples that I'm showing might be confusing that's why it's best to speak with a and turning to make sure all those eyes are got it and all those T's across even if you're just a single member LLC owner it's really important important to have the LLC operating agreement on file at all times within the conference because it just helps eliminate any continue down the road so I exit I can't stress it enough but we have a lot of our clients that that don't do they off the operating agreement or they come back to us and they tell us well I have this new member now and I got to get rid of this person but I we don't know that information so that's why you would have yells the operating agreement on file all right so we do offer several different templates that you can use they're free we don't charge anything for you to obtain for up and give you an operating agreement again these are just standard templates that you can customize to your business needs but you don't want to use one of our templates you can obviously go online and can find other templates out there it just really depends on what no you're looking for like I said there's no set standard for an LLC operating agreement so you're going to find a number of different operating agreements out there that are going to be written differently so it's you know you just have to decide which which one is best for you but we do offer a single member operating agreement a multi member of multi managed operating agreement and we also offer the series LLC operating agreement which can be found directly on our website at the link they see at the bottom of the page you can easily a PDF download and just print it right from there um and you can handwrite it in or you can even you know get it out of a PDF format and edit it yourself so it's it's you which operating agreement template best works for you but we do have them available on our website ok so I know this was a quick presentation with a lot of different information but I hope it was a value to everyone again this webinar is being recorded and the slides will be sent to everybody if you missed some of the presentation but I hope you enjoyed it I'm having help answer any questions that you have if I'm not able to answer any of your questions due to time restraints on the webinar you can always contact our staff via phone email live chat or Skype and it will be happy to answer any of your questions that you have you guys can also reject I mean personally if you would like and I'll be happy to answer your questions as well so it's are about ever like and he'll finish up the presentation and then I'll come back and answer any questions again thanks like he said I hope that you've gotten a lot out of this presentation so far and it sometimes can be a confusing topic and lose for answering your questions here in just a minute I do want to mention again that we offer free lifetime support and you can see on your screen the various ways that you can reach us we are available by phone and by email we have a live chat feature on our website and we have the escape account that you can use to contact us as well in fact we're on the verge of adding what that feature so that should be available shortly we'll give you another way that you can contact us as well our blog is available I think some of you probably found this webinar by being subscribe to our blog if not if you're not already subscribed to be pretty to do so send out some really great content every week we only send one email per week and we don't spam you it's just the items that are coming on our blog and we absolutely will never sell or share the information that you give us your email address or your name or anything like that and with that we can drop into some questions one that came in just here at the end Mike was for an annual IRS tax declaration do you have to inform the gift you because I'm not totally understanding the question gets to inform the operating agreement to inform the members I'm going to assume that this question is asking if it needs to be updated annually for the IRS to know who the members are that so the IRS typically within an LLC the D income is passed through to the members so the members are typically filing their code individual income tax returns so often the IRS does not require to know the ownership of yellow see if they do you know an audit them they may want to see your operating agreement and things of that nature but I wouldn't be able to to speak on that laughs another question is this given can i okay if somebody has a CI n number can they have employee bleeps Bush I yeah so they think of the federal tax ID number also known as the employee identification number as the social security number for the business it's going to allow you to hire us employees it's going to allow you to operate lawful this effective is here US and it's going to allow you to open a US bank account along with a number of other things so you can hire as many employees as you would like if you're physically located out of the US and you're not doing and you're not opening into this banks counter you're not hiring employees or anything of that nature then you typically don't need a federal tax ID number but if you are looking to hire you as employees you're looking to open a US bank account and you're looking to possibly establish an office location here in the US every company is required to have a federal tax ID all right next question is who in the company should have access to the operating agreement ever every only members or the owners along with any manager in the company should generally have access to LLC operating agreement it's you know it's typically determined internally who has access to it but you generally would have any main people in the company with access to okay so like you mentioned earlier on that every LLC to having an operating agreement including ones that are single member LLC's why would a single member LLC one and operation treatment is just the one person so there would be a number of different reasons why you would want that but it's mainly it it's the reason you would have an LLC operating agreement is in case there's a death within the company so they would properly know what to do with the LLC after that person has packed away so that the reason why you would have an L T operating agreement on file even if you are just single-member owner or it could be for other reasons you know there's you know a divorce or there's a family dispute or something of that nature that would be another reason why it would have an LLC operate agreed all right great and can an LLC also have bylaws of the corporation so the bylaws are completely only have to do with a corporation the operating agreement is for the LLC that show the ownership operations and management where's bylaws are are different and our for corporation because the bible's have stock and all are the corporations have stock involved and stock transfer doctrine ledger it's that nature so the bylaws are are different problem analysis okay and we have one more question that came in if anyone else has questions now's the time to get it otherwise we can wrap it up after this do you recommend getting an operating agreement for foreign clients notarized if you have multiple members on the within your company it may be best to get it notarized so that way it is you know a true and consent form between everybody and they have the official document so you know it's it's not a requirement but it may be something anymore look alright excellent so I think that's going to wrap us up for today this is nice and quick so if you did have a narrower blocked out for us and we're happy to give you back a half hour to take a break just one once whatever you might need to do and we thank you for joining us today you are welcome to contact us at any time if you have additional questions about up arrears or anything else that we might be able to help you with and now we will see you next time on our next little are in September

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Phil M

I love the price. Nice features without the high price tag. We don't send that many documents so its nice to have a reasonable option for small business.

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This service is really great! It has helped...
5
anonymous

This service is really great! It has helped us enormously by ensuring we are fully covered in our agreements. We are on a 100% for collecting on our jobs, from a previous 60-70%. I recommend this to everyone.

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I've been using airSlate SignNow for years (since it...
5
Susan S

I've been using airSlate SignNow for years (since it was CudaSign). I started using airSlate SignNow for real estate as it was easier for my clients to use. I now use it in my business for employement and onboarding docs.

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Frequently asked questions

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How do you make a document that has an electronic signature?

How do you make this information that was not in a digital format a computer-readable document for the user? " "So the question is not only how can you get to an individual from an individual, but how can you get to an individual with a group of individuals. How do you get from one location and say let's go to this location and say let's go to that location. How do you get from, you know, some of the more traditional forms of information that you are used to seeing in a document or other forms. The ability to do that in a digital medium has been a huge challenge. I think we've done it, but there's some work that we have to do on the security side of that. And of course, there's the question of how do you protect it from being read by people that you're not intending to be able to actually read it? " When asked to describe what he means by a "user-centric" approach to security, Bensley responds that "you're still in a situation where you are still talking about a lot of the security that is done by individuals, but we've done a very good job of making it a user-centric process. You're not going to be able to create a document or something on your own that you can give to an individual. You can't just open and copy over and then give it to somebody else. You still have to do the work of the document being created in the first place and the work of the document being delivered in a secure manner."

How do you write and sign on a pdf?

(I know this is an old question on the internet, but I'm not sure where else to ask.) I'd be interested in learning what you use." This question is actually a bit more complicated than it looks. I'd actually start with this one: What's the best way to get your book published? And in order to get your book published, what are the different ways? Let's start with what the authors do. What's the best way to get your book published? There are two ways to get your book published: Publishing your book through a traditional publisher Publication through a self-publishing service These services are pretty different in what they offer. Traditional Publishers Traditional publishing is a publishing technique that has been in place for hundreds of years. Traditional publishing is an industry that produces books, usually for a fee. The main difference between the two types of publishing methods is their approach to book marketing. Traditional publishing methods focus on selling books directly to bookstores, which will usually be the first place a book will be sold. Traditional publishers tend to charge less than self-publishing services, and their marketing strategies tend to be geared towards marketing the book to bookstores. Traditional publishers will take a lot more time and effort to develop their book marketing strategies than a self-publishing service will have. They will often be trying to sell their book through traditional channels before any direct-to-store marke...

How to digitally sign pdf with engineering stamp?

This is the question I'm most commonly asked and I think it has more to do with our culture than the technology itself. Digital signature on a pdf file? When you download a pdf, you can choose to either save the file as an attachment to your email, or open the file with any reader program. These programs will create a new file within a folder of the program. Then when you later open the file, you may see a signature of the reader. This file is called a .signature file or .psk file, and it is essentially the signature file to the pdf file. If someone were to open a file with an engineering stamp to the .PSK file and open the file with a reader program, he/she would open a file that is digitally signed with a digital signature. The reason why this is important is the signature is a digital code. It may take more time to copy the original PDF for copying to a computer. So, when you download a pdf file, you should take the time to make sure that the file is signed. It is a good idea to copy this file to another device and copy the new signature file back so the other devices can verify the signature. So, if you are using a computer to read the pdf file using some application, it is a good practice to copy the signature file and keep the original signature file. This helps to ensure you have the original signature. In order to convert the signature file to use with a different application or device, you will need to edit the signature file. This is generally accomplished...