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Fill and Sign the How to Form an Llc in Marylandnolo

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- 1 - SINGLE-MEMBER OPERATING ARRANGEMENT OF _______________________________ LIMITED LIABILITY COMPANY STATE OF MARYLAND THIS OPERATING ARRANGEMENT is hereby established, this the _____ day of ______________, 20___, by _____________________________________ the Initial Member. The Initial Member contemplates that additional Members may join the limited liability company in the future, and the following Operating Arrangement has therefore been developed. ARTICLE I FORMATION OF LIMITED LIABILITY COMPANY 1. Formation of LLC. The Initial Member has formed a limited liability company in the State of Maryland named ___________________________________________________ ("LLC"). The operation of the LLC shall be governed by the terms of this Arrangement and the applicable laws of the State of Maryland relating to the formation, operation and taxation of a LLC. To the extent permitted by law, the terms and provisions of this Arrangement shall control if there is a conflict between state law and this Arrangement. The LLC shall be taxed as a sole proprietorship until and unless additional Members are added, after which the LLC will be taxed as a partnership. Any provisions of this Arrangement that may cause the LLC not to be taxed as a sole proprietorship or partnership shall be inoperative. 2. Articles of Organization. The Initial Member has caused to be filed Articles of Organization, (“Articles”) of record with the state, thereby creating the LLC. 3. Business. The business of the LLC shall be: a) _________________________________________________________ _________________________________________________________ _________________________________________________________ and b) To conduct or promote any lawful businesses or purposes that a limited liability company is legally allowed to conduct or promote, within this state or any other jurisdiction.
4. Management and control. The LLC will have a management company, and its sole and separate board of directors, which will consist of the initial member and at least 3 additional members. The additional members will hold the LLC shares representing the right to exercise voting control over the management company. The initial member may designate additional persons to serve as his or her officers. The initial member has also caused a llc bank account to be set up which will provide the initial member to accept transfers of LLC business (or property) (including any property acquired by sale) with no tax liability to the members. The initial member has also caused a llc bank account to be established which allows the members to transfer the LLC shares to one of the additional members with no tax liability. 5. Legal capacity and title. The LLC will provide its members with full legal capacities and full and complete title to the property under management, and will maintain ownership of all investments and interests in the LLC. 6. Organization fees. An initial member will be required to pay the initial LLC fees in the event that they wish to operate their LLC in accordance with this arrangement. 7. Fees. When the initial LLC is created, its first llc meeting will be held in the state of Maryland, at which time the initial llc will be subject to all the laws and rules of Maryland relating to the formation, operation and taxation of a LP. This llc will also be subject to the llc organization fees, for the initial LLC's initial operating expenses, which is equal to three percent of the LLC's total assets, including the llc's operating expenses. All operations related to the LLC at such time will be conducted in accordance with the LLC operating agreement. The llc will be subject to the LLC tax until the llc files articles of organization with the state in accordance with the provisions of this agreement and files any required amendments to these articles of organization. Each initial member shall pay at the time of becoming a member the amount set forth below, to be paid by the LLC before or at the close of the llc's first annual meeting: in the case of a one-member LLC, the initial llc member will pay in the case of a llc containing 5 members, the initial llc member will pay the equal of the least of: x 5 = for each additional member the initial LLC member will pay the lesser of: x the number of other members in the LLC, or x 10% of the

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