Mississippi LLC Operating Agreement Overview
Creating an LLC in the state of Mississippi is just as easy as it is in most states. The only difference is that you have formed with different names, and different requirements, all of which need to be filled out and submitted to the Mississippi Secretary of State’s office. This can be done digitally, or you can send it in, in order to complete this process. There is one document that you may not want to create, but it is important, call the Operating Agreement. This is a document that some people fail to create simply because it is not needed in order to complete the process of obtaining their LLC in Mississippi. However, let’s go over what it is, how to fill it out, plus some general information on how you can create your limited liability company in Mississippi.
What Does The Operating Agreement Do?
The Operating Agreement for any LLC functions in the same capacity. It is a document that is going to list several different aspects of the limited liability company that you are forming. If you are multiple members, or just yourself, this will be noted on the document. If there are multiple members, the percentage of interest is going to be listed as well. Each person is also going to have certain responsibilities, as well as certain rights, that are part of their membership in this LLC. They will have voting powers, and they will also responsible for the profits and losses of the company associated with the limited liability company. If there are meetings that need to be held or votes that need to be taken, there are rules that must be abided by which will also be presented. Buyout provisions should also be stated in case somebody decides to leave, or somebody dies, while the LLC is still functional.
Why Is This Not A Necessary Document?
The Operating Agreement is not a necessary document because it serves two purposes. First of all, it is for your personal reference in regard to how your LLC is structured. Second, in a court of law, it can prove that your limited liability company is a separate entity. This is something that can be helpful as you are trying to defend yourself against possible litigation which may be trying to obtain your personal assets. The only document that is needed is the Certificate of Formation.
What Is That Certificate Of Formation?
This is a document that is submitted directly to the Mississippi Secretary of State office. It is what they will use in order to determine if you can set up your LLC. You will have to do some research before filling it out. This will include verifying that the name that you want for your limited liability company has not been registered by another business. You must also state the LLC name, and the designator, directly after the name itself. The email address of the limited liability company must be present. This could be a personal address if you prefer. It must also have the effective date as to when it will be started which can happen 90 days after the filing. The NAICS code must also be listed, plus the registered agent and their name and address. Any organizers, members, or managers that are part of this limited liability company must also be listed along with their signature.
Final Thoughts About The Operating Agreement
Even though this is a document that is not necessarily needed, there are five reasons why you should create this. First of all, it allows you to finally plan out, in writing, what your LLC represents. Second, it’s going to list everyone that is involved with your limited liability company. This can be for your reference, or if someone decides to leave, or change the rules, you will have this documentation to represent your position. Third, it is necessary for a court of law to help defend the potential of another person or company trying to get your assets. Fourth, you can use this for reference as you are deciding whether or not to expand your company, or perhaps to limit the number of people that can be part of your business. Finally, the limited liability company that you create will obviously have profits and losses. By having this in writing, you can see how your company has grown over the years, or if it is losing money, you can make decisions to improve your position as you market your products and services.
Once you have paid the $50 fee to file this paperwork, shortly thereafter, they will approve your LLC. As long as all of the documents have been properly completed, you should not have any delays. However, if you are concerned about whether or not it is completed, or if you simply need help with completing all of the documents that you would like to create for your LLC, contact the business that can help you complete the process.