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Writing your first LLC operating agreement

On Behalf of | Jun 7, 2022 | Business Organization

Opening a new business in Mississippi is easier than ever. The laws have been made much simpler and quicker to take advantage of. As a result, you can easily put your LLC operating agreement into place. There will be a number of details to take notice of before you do so. These can be outlined in the following way.

How to structure your business as an LLC

There are a number of business law benefits that you can access by deciding to structure your business as a Limited Liability Corporation (LLC). Once you have done so, your next move should be to create an operating agreement. This agreement should be one that is binding on all parties who are involved in creating the company. It will cover the way the business is maintained.

A basic operating agreement should begin with a few details that are key to the founding and organization of your business. These should include the legal name of the company. Any alternate or fictitious names should then be listed. The address of your company, as well as your registered agent, must also be included.

The operating agreement that you set up should include a few lines that concern the basic purpose of your business. These should provide details about the sector of industry that you operate in. You can then go on to list the primary products and/or services that your business intends to provide to the public.

You need to figure out your taxes

An LLC will be one of many different types of business organizations that you can choose to form. You can choose to become an S-corp or C-corp. The choice that you make in this regard will have an impact on the way that your business is taxed.

LLCs tend to be taxed as disregarded entities. The company itself doesn’t pay a business tax. This is taken care of by the individual members. Each one reports their share of profits and losses from the LLC. They are taxed at the level of their individual income tax rate.