The Benefits Of Completing A Utah LLC Operating Agreement
In the state of Utah, after you have completed filing for your LLC, there is one document that you may want to also complete. It is not mandatory and is certainly not needed for filing for a limited liability company, but it may serve you well in the up-and-coming years, particularly if you are facing some type of civil lawsuit. This document is called the Operating Agreement, and it is not mandatory in most of the states in which LLCs are formed. It does play an important role, at least from a personal perspective, for the owner of the business and the LLC that is formed.
What Is Contained Within The Operating Agreement?
The operating agreement is designated as an internal document. This means that the owner of the Utah LLC in business will keep it for personal use. It is going to detail with the managers and members of the LLC are responsible for. Specifically, their rights and responsibilities will be listed out in this document. In regard to limiting your personal liability, it is essential that you have this, as it will clearly show that the limited liability company is separate from you and your assets. It does not need to be filed along with the Articles of Organization. However, it plays an important role in maintaining the distinction between you and the LLC itself.
Why Do You Need Articles Of Organization?
This is a document that must be sent in on the Utah Online Business Registration website. You can also print this out and send it in by mail. It is the document that is required by the Utah Division of Corporations to determine whether or not you can get an LLC. In this document, you must have first registered your limited liability company name. This is something you have done after first searching on the Utah business name database to see if it was available. If you did register this name, you can then put this on the Articles of Organization, and then you will also want to list the name and address of your registered agent.
What Is The Purpose Of The Registered Agent
A registered agent is a person or even a company, that can act as a mediator between the state and you when they are sending legal documents. These documents tend to be related to lawsuits that people have filed against you. You need to have one for your LLC to be fully operational. If you don’t have one, this could compromise the ability of your limited liability company to maintain its status, so you need to continue to use them once your LLC is formed. You will need to put the name and address of this company or individual on the Articles of Organization, and then you will complete the rest of this document.
How To Finish Your Articles Of Organization
You also need to add the principal office or location of your LLC. This can be the place of business that you are using right now for your company. The signature of the organizer for your LLC must also be included. There are a few optional things that you can add. This will include the names and addresses of the managers or members that are part of your LLC. Obviously, if you are the only person in the limited liability company, you would only list yourself. The duration of the LLC, and its overall purpose, are also optional things that you can add. Once done, you will pay $70 and file this through the Utah Online Business Registration website. That’s the fastest way to get it to them, and over the course of several weeks, you will finally hear back regarding the creation of your limited liability company.
What If You Don’t Create Your Operating Agreement?
As mentioned before, this is an optional document, yet it does play an important role in certain circumstances. Even if you do never use it for legal reasons, it is a good overview of how your LLC is going to operate along with your members, managers, and anyone else that is involved. It allows you to definitively see what each person’s rights and responsibilities are. Therefore, if there is ever a question about what a person’s role in a limited liability company is, you can refer to the document.
This quick overview of how to create your Operating Agreement, and why you should create one, should prompt you to do so if you are creating an LLC. Although the Operating Agreement is a completely optional task, you still should have one in your files for reference. If you have not created your LLC yet, you can continue to register the name of your LLC, find a registered agent, and then submit your Certificate of Organization. Additionally, if you would prefer not to do any of this, yet you still want to have your LLC done this year, contact a business that specializes in the creation of Utah LLCs.