If you are planning to establish a new limited liability company, you will be required to fill out a Texas Series LLC Operating Agreement. In case you are not familiar with this type of document, it is basically an agreement between the LLC and the members of the partnership that will help the LLC function properly and smoothly.
It is a good idea to use a Texas Series LLC Operating Agreement Example so that you can get a good idea on what the document looks like. It is also a good idea to have someone else review it so that you can make sure that all the necessary information is included and in order.
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The LLC is a legal term that is commonly used by attorneys and business people. The term is derived from the law of common-law, which states that partnerships are formed between individuals or corporations that do not have to share any assets. The name derives from the Latin phrase “ocius” which means a group or society. In the US, partnerships are required by law to be registered before they can operate.
The members of an LLC are known as members, partners, members-elect, members, or members-asset. A member may be a person or a business, as long as all other requirements are met such as paying the LLC fee. The LLC has no owner or officers; instead, the owners elect the members and officers and the officers may be appointed by the LLC’s board.
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The Texas Series LLC Operating Agreement comes in three sections. The first section includes the name of the LLC. It also gives the LLC the names of its corporate agent and its registered agent. This document is called an operating agreement, because it governs the business operations of the LLC. The second section of the document lists the members and their responsibilities as members of the LLC.
The third section is the TBI. This part of the document is used to protect the members of the LLC. A TBI is referred to as the “Temporary By-Laws” because it is meant only for a limited time and then becomes a permanent by-law after it has expired.
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You should also note that the Texas Series LLC Operating Agreement Example should only be used as a guide on how the documents should look like. You are free to make any changes that you want to the document and ensure that it conforms to your specific business requirements.
To get a complete and accurate Texas Series LLC Operating Agreement Example, it is best if you have a person who specializes in drafting legal documents to review it. There are several online companies that will allow you to create your own. Operating agreement. They can also help you create one for free if you are having problems with it.
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The TBI is mostly concerned with the rights and responsibilities of the members of the LLC. It spells out the members’ rights to sue the LLC for the negligence or breach of contract of the members. If one or more of the members is sued, the members-asset receives a portion of the lawsuit’s settlement. If the lawsuit is won, the members-asset is entitled to half of the profits made from the sale of the assets of the sued members-asset. If the lawsuit is lost, no damages are awarded to the members-asset.
Another section of the TBI deals with the rights and responsibilities of the members to participate in the management of the LLC. It states the members-asset is entitled to vote in general meetings of the LLC or the Board, which will hold meetings at least once a year and is entitled to vote to elect officers.
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The TBI also sets up a document that limits the liability of the members. If one of them is injured or dies, the liability of the other is limited to his or her share of the proceeds of the settlement of the lawsuit. If one of the members leaves the LLC or the members-asset dies, his or her share of the estate is not liable. Other members-asset may not be responsible if the LLC fails to pay its debts or court judgments against it. If the members-asset fails to pay its debts, it is required to sell assets it owns in order to cover the debt.
Finally, the TBI states what will happen if the members of the LLC fail to meet their obligations. If the members-asset fails to pay its debts, the members-asset must distribute the balance to the creditors. In proportion to the amount owed.