Why You Need A South Carolina LLC Operating Agreement
Forming an LLC in any state often requires very specific documentation. For example, if you are forming a limited liability company in South Carolina, there is a comprehensive document called the Operating Agreement that you should fill out. As with most states, this is not a requirement by the state when forming your limited liability company. However, it does play an important role in the functionality of your business. This is why you should consider completing your Operating Agreement if you are forming an LLC in the state of South Carolina.
What Is On The Operating Agreement?
This internal document that you will keep for yourself is going to present information about how your LLC is going to function. It will list all of the managers and members of your limited liability company. It will also state what their responsibilities are, and what their rights are, within the context of the LLC. How the limited liability company is managed, as a separate business entity, must also be presented in this document. In fact, there are many other things that need to be included such as the percentage of interest for all of the members, what their voting powers are, and how losses and profits are going to be allocated. It is also necessary to hold meetings from time to time. This will list who is responsible for holding the meetings, taking the votes, and also the rules of this conduct. Finally, if someone becomes ill, or dies, you need to have buyout provisions for the members that may no longer be there.
How Does This Pertain To Creating An LLC?
The creation of your limited liability company does not have that much to do with the Operating Agreement. It is simply a document for reference. Although it can be used in a court of law to define that your LLC is truly a separate entity, it is something that you will simply keep for internal purposes. In regard to setting up your LLC, there is a different document that must be created. This is called the Articles of Organization. In the state of South Carolina, this is a somewhat more complex document by comparison to many of the others.
How To Fill Out Your Articles Of Organization
Filling out this document begins with obtaining it from the South Carolina Secretary of State’s website. On this document, you need to list the name of your LLC, as well as the designation of this limited liability company. You should also have retained the services of a registered agent who will handle all of your legal mail. Their name and address must also be on this document. The initial office where the LLC will be operating, and its address, should be listed. If you have a manager that will be running the business, and if it is a manager-managed LLC, this must be placed on this document as well. The term end date, and the delayed effective date, should also be noted. Finally, at least one organizer that is part of the LLC should list their name, address, and they must also sign the document at the bottom to make it official.
Where Do You Submit The Articles Of Organization To Create Your LLC?
Once this is done, you will then need to submit this promptly to the South Carolina Secretary of State’s office. This can be done by postal mail, or it can be done online, and you must pay $110 for this service. As with many other states, this process can take between four and six weeks. There is also a rush processing which is available at an additional cost. If you decide to take advantage of this, the creation of your LLC can happen in between two and three days.
Do You Really Need To Complete The Operating Agreement?
In terms of forming an LLC, it is not a mandatory document. This is what the Articles of Organization are for. You do need to have this available just in case there is legal action taken against your company. At the very least, it is a reference document, allowing you to see how your LLC started, and any changes that you may make over the years.
Now that you know the importance of forming an LLC, as well as creating your Operating Agreement, you should get started right away. If you don’t have one, there are always reputable businesses that can assist you with the process. Even better, these businesses can also help with the completion of the documents, their submission, and may also have recommendations for registered agents. If you would prefer to not do this on your own, you can always take advantage of the many excellent services available to help people set up LLCs in South Carolina.