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Video instructions and help with filling out and completing cold storage agreement template
Hi everybody I'm attorney Aiden Kramer with the law office of Aiden Kramer in Colorado welcome to the magical world of all up in your business I've talked a lot in previous episodes about the importance of an operating agreement in an LLC particularly in a single-member LLC the operating agreement for an LLC is essentially the written agreement of the members about how to operate the LLC so it may seem odd for a single-member LLC to have an operating agreement because it's not like there's going to be any votes the single members not going to disagree with anybody the single member can for the most part do whatever they want with the company but an operating agreement nonetheless is very very important in a single-member LLC Colorado doesn't require an operating agreement for single member LLC's or for any LLC's for that matter but some states do require them and even if it's not required it's still an important piece of paperwork to have for your LLC in a single-member LLC the primary purpose of the operating agreement is to help uphold the limited liability that an LLC provides the operating agreement helps to avoid piercing the corporate veil which I've talked about in previous episodes so what I'm going to do today is walk through a sample operating agreement so you guys know some of the important points that should be made in your single member LLC's operating agreement first let's start with the basics your operating agreement should include your business's name the address of the business the registered agents information and the business purpose all of this information should also be reflected on the articles of organization that were filed to create the LLC and the business purpose is the purpose of the business what kind of a business are you going to be operating what are you going to be doing my operating agreement for example would say that I'm going to be operating a law practice focusing on business transactions and estate planning so whatever the purpose whatever you're going to be doing in your business that's what your business purposes your operating agreement should also reflect whether the LLC is going to be member managed or manager managed if you're unsure about which one your LLC is or what it should be check back to my previous videos because I have one explaining the difference between member and manager managed LLC's the operating agreement should also include information about the owners or the members of the LLC and the percentage breakdown for each one obviously since you're the only member in it you own a hundred percent but your operating agreement should reflect that you are one hundred percent owner of the LLC you also want to include information about how the LLC is going to be taxed are you going to leave it as a disregarded entity or are you going to elect to be taxed as an S.