Language for Articles of Organization LLC Ownership
I am in the process of drafting the articles of organization for my LLC.
I would like to specify in there, that the ownership of the LLC is specified with units, and LLC members receive a certain number of units depending on their involvement, and the exact amount will be decided on per vote by all current members, and with further references to the operating agreement (I figure I keep the things that are likely to change in the operating agreement, for increased flexibility, since I dont have to file that with the state)
I am unable to find any example documents with the somewhat appropriate legal language to give me an idea how to word this.
Does anyone know how I could word this?
I found plenty of sites explaining this, but no actual examples or fill in the blank forms...
Appreciate any pointers in the right direction.
LLC Incorporation Legal Legal Documents Legal Entity
3 Answers
The reason you cannot find any is because in most countries (you didn't mention yours, so its hard to tell exactly) it would be considered as practicing law, and requires the provider of such a document to be a lawyer and you to be his client.
So, if you want specialized documents with specific terms and conditions - you'll have to get a lawyer and have him draft this for you. Online and/or for free you will only find generic templates that are not considered "drafted document" for you to fill, as you do.
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I doubt that I would be the the only person who ever wanted to start their LLC using the units-ownership-structure, so why ask a lawyer to "draft" one - if probably hundreds of other companies were already using the exact same document? – Olli 11 years ago
Plain English works fine. I found a template for my Articles of Organization by googling 'sample llc operating agreement filetype:pdf'. This was several years ago (I would show you mine but I can't find my digital copy), and it was a pdf. I re-wrote the entire document in MS Word because the copy and paste functionality produced weird formatting. Anyway, the part about units looked similar to this:
This one is okay and simple, as it clearly lists the member name, an optional address, how many units they have, and their stake in the company as a percentage. I can't link to the document as I don't think that's allowed, but the google keyword above should get you good examples.
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haha, english will work... What a relief... ^^ Thanks for the hint with searching google for filetype - that's a really good idea. – Olli 11 years ago
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@olli not a problem, don't forget to mark as answer if this helps! – Md Moore313 11 years ago
The entire discussion, not just the details, belongs in the Operating Agreement.
Why are you inclined to address this subject in the Articles of Organization? The reason you cannot find an example to copy is because you want to do something that no one who is knowledgeable wants to do.
Please pardon my bluntness, but it is evident that you lack the expertise to draft such provisions appropriately. You should retain a lawyer to help you. It will cost less to prepare the Operating Agreement properly up-front than to clean up a mess down the road.
Disclaimer: This information does not constitute legal advice and does not establish an attorney-client relationship.
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Counter question: Why should it go in the Operating Agreement? I want to put it in the Articles of Organization, because this seems to be a rather "fixed" thing - something that wont change. Something that is part of how the company is "organized". So it can be filed with the state, and sit there for years. And then in the Operating Agreement I figured to only put things that may change at some point, since it doesn't have to be filed with the state... – Olli 11 years ago
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Also just saying that if I had any clue of what I need to do, I wouldn't be asking here, and if I had the money to hire a lawyer, I'd have already hired one. :) – Olli 11 years ago
