When it comes to setting up a professional limited liability company (PLLC), one of the most important documents you`ll need to create is the PLLC company agreement. This document sets out the rules and regulations governing the operation of your PLLC, and it`s crucial that you get it right to ensure the smooth running of your business.
So, what should be included in a PLLC company agreement? Here are some key points to consider:
1. Ownership and Management: The company agreement should clearly state who the owners or members of the PLLC are, and how they will manage the business. This includes the roles and responsibilities of each member, as well as how they will make decisions and vote on important matters.
2. Capital Contributions: Another important aspect of the PLLC company agreement is how much each member will contribute to the company. This could be in the form of cash, property, or other assets, and it should be clearly outlined in the agreement.
3. Profit and Loss Sharing: It`s also important to establish how profits and losses will be shared among the members. This could be based on the amount of capital each member has contributed, or on some other agreed-upon formula.
4. Dissolution and Termination: The PLLC company agreement should also include provisions for what happens if the company needs to be dissolved or terminated. This could be due to a unanimous decision of the members, or in the event of bankruptcy or other legal issues.
5. Governance and Decision Making: Finally, the PLLC company agreement should outline how the company will be governed and how decisions will be made. This could include rules for meetings, voting procedures, and how disputes among members will be resolved.
By carefully crafting a PLLC company agreement that includes all these important elements, you can help ensure that your business runs smoothly and all members are on the same page. And, if you`re not sure where to start, consider consulting with a legal professional experienced in PLLC formation and operation to help guide you through the process.