Operating Agreement LLC Utah: Everything You Need to Know
An operating agreement LLC Utah is a crucial document that outlines the basic management structure of your business.3 min read
2. LLC Registration Process
3. Registered Agents
An operating agreement LLC Utah is a crucial document that outlines the basic management structure of your business. A Utah LLC agreement is a document that applies to companies of any type, and you may tailor an operating agreement to your liking. Operating agreements function in a variety of ways, most notably to establish basic rules and operating procedures of the business.
Utah does not mandate an operating agreement, but it is a good idea to have one in place. Without an agreement, members may expose their assets and shares to legal risk in case litigation arises.
With an operating agreement, each member’s/owner’s assets would be protected while securing limited liability protections. Also, operating agreements allow members to take advantage of certain tax advantages once the agreement has been filed. You may find the document via the secretary of state website. When you download the document, you may print and complete it.
You’ll need certain information about the business:
- Name of the business
- Primary business address
- Member addresses and names
- Creation date
- Contribution of all members, including percentage shares
- Bank account info
- How the LLC will be managed: whether it will be member-managed or manager-managed
- Manager names and addresses
Also, you should include parameters regarding the disability or the death of a member. Further, include a provision that stresses the transfer of memberships, including the addition of new members. If property is involved, mention how a sale would take place if any property needs to be sold. Regarding meetings, establish how meanings will take place and any voting procedures involved. Moreover, include a provision that details the dissolution of the LLC.
Also, you should have a dispute resolution clause to handle potential conflicts. This is one of the most important clauses, as it could prevent potential legal disputes.
Operating Agreement Instructions
The following is a general guideline of how you should tailor an operating agreement. Use these steps to guide what information you should include in the agreement:
- Step One: When you download the document from the state website, enter the business name at the top of the form.
- Step Two: Enter a date when the agreement will enter into effect. Also, enter additional information, such as whether you are a sole owner or if you are part of a multi-member organization. Include names and addresses of members if necessary.
- Step Three: Enter the name of the business and primary address. Moreover, include the member or manager names. Mention member shares and the compensation models.
- Step Four: Include all information pertaining to bank accounts, including any other financial information about the business and members.
- Step Five: Include a provision regarding meetings and the assignment of new members. Additionally, you can include a dissolution method for the LLC. You should also include a part for arbitration and settlement disputes.
- Step Six: Once completed, sign the document and give copies of the agreement to all members. Also, ensure that all members agree to the terms and know the operating procedures of the LLC.
LLC Registration Process
When it comesto the naming process, make sure that the name is not already registered in the state database. Conduct research by going to the online database in Utah and searching for names registered in the system. Under Utah law, the LLC name should contain designators, such as “LLC,” “Limited Liability Company,” and “L.L.C.” Also, be aware of the following word restrictions:
Such words require additional certification. Outright prohibited words include:
- Secret service
You may not use any words that associate your entity with a government agency.
You may also reserve your name for up to 120 days by filing a reservation application and sending it to Utah’s Division of Corporations. The reservation fee is $22, and you may file via online or by mail. You may also purchase a domain name, even if you have no intention of creating a website. Reserving a domain name prevents others from using your business name online.
Utah law mandates a registered agent. A registered agent is someone who accepts legal paperwork on your LLC’s behalf. You may choose any individual as a registered agent, including yourself, or it can be a business that’s authorized to do business in the state. Regardless, all registered agents must have a physical street address within Utah.
If you have more questions on an operating agreement LLC Utah, post your legal need to our UpCounsel marketplace. UpCounsel’s attorneys will guide you in creating a sound operating agreement that safeguards your interests. Moreover, they will guide you throughout the LLC filing process and will give you more information on the necessary maintenance procedures.