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FORM 3.2 — Operating Agreement for Family LLC |
Price: $50.00
Revised: October 1, 2009 - 36 pages
Description:
Form 3.2 is an operating agreement for a family LLC organized to hold investment real property. The form contemplates that the LLC will be organized by a husband and wife and that they will make gifts of interests in the LLC to their children and grandchildren. Under the form, the initial members will also be the managers, and thus will retain control of the LLC. The form is designed to create an opportunity to value gifted interests in a favorable manner for federal gift tax purposes. However, no assurances can be given that favorable gift tax valuation of interests will be available.
Features:
Business purpose - Operating agreement recitals seek to establish that the LLC has a business purpose apart from tax avoidance.
Buy-sell provisions, redemption - Operating agreement provides for purchase of an expelled member's interest by the LLC if the other members elect to continue the LLC and grants the LLC a right of first refusal to purchase a transferring member's interest.
Dissociation - Operating agreement provides that the death or disability of a member does not cause a dissolution of the LLC.
Distributions, required - Operating agreement requires annual distribution of net cash flow.
Management - Operating agreement for manager managed LLC, with managers named in the operating agreement who will continue to serve until their death, incapacity, resignation, or removal.
Profits and losses - Operating agreement provides that profits and losses of the LLC are allocated between members based upon their percentage interests, which are proportionate to capital contributions.
Securities laws - Operating agreement contemplates that members' interests are securities, subject to state and federal securities laws.
Transfer restrictions, permitted transfers - Operating agreement permits members' interests to be transferred to family members or to trusts for the benefit of family members.
Withdrawal - Operating agreement prohibits members from withdrawing from the LLC.
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| WORD FORMAT |
Form ID: 3002-DOC
Title: Operating Agreement for Family LLC
Price: $50.00 |
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| RTF FORMAT |
Form ID: 3002-RTF
Title: Operating Agreement for Family LLC
Price: $50.00 |
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