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Missouri LLC Operating Agreement Guide

All LLC owners in Missouri should create and put in place an operating agreement in order for their business operations to be protected. Along with being legally required by Missouri, an operating agreement sets clear expectations and rules for your LLC and also establishes your business as a legal and credible entity.


LLC Operating Agreement Missouri

What Is An LLC Operating Agreement In Missouri?

An operating agreement is a specific type of legal document outlining an LLC’s operating procedures and ownership structure.

Whether you are launching a multi-member or single-member LLC, all of the following topics should be addressed by your operating agreement. Some of the stipulations will not be very relevant to a single-member LLC’s actual operations, but for legal formality’s sake, it is still important for them to be included.

Organization: When your LLC was officially established, who the members are of the LLC, how the ownership of the LLC is divided up. There are two types of ownership structures that can be used by multi-member LLCs. They can either use an equal ownership structure or various members can be assigned various ownership units.

Voting & Management: It does matter whether an LLC is managed by an appointed manager or by its members, and how members vote. Each member usually has one vote. However, f you want some of your members to have more voting power compared to others, you can do that.

Capital Contributions: This refers to the amount of money that each of the members of your LLC has invested in the business. You can also establish a method here for raising future additional funds.

Distributions: This details how profits and losses are divided among your members. Distributing profits evenly is the most common option that is used. If you would like to divide them in a different way, you should detail the method in the operating agreement.

Membership Structure Changes: This describes how ownership and roles will be transferred if a member leaves the LLC. It is critical to lay the process out for replacing and/or buying out a member in the governing document of your LLC.

Dissolution: If at a certain point in time all of your LLC members decide they do not wish to conduct business any longer, then the LL should be officially dissolved. An important component of your operating agreement is to outline the potential process of dissolving the business.

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