A company agreement for a single LLC member provides important information about your LLC in writing. Many sites that try to sell you LLC forms and services will tell you that if you don`t have a solid LLC business agreement for a single member, you will lose protection. This is a total lie. No single member LLC business agreement will save you if you use your LLC bank account to pay for personal belongings such as entertainment, food, personal vacation, etc. If you use your LLC bank account as your personal piggy bank, you lose your liability protection, even if you pay $5,000 to a lawyer for a broken LLC business agreement for a single member. This first section of the single member LLC company agreement basically serves 4 functions: Hello, Matt – I am an individual entrepreneur who has just filed to become a single member LLC in Illinois. I came across your site because I am looking for examples of integrating the concept of a “jumping member” to name my sister who will take over after my death. I know Illinois allows it in LLC status, but I don`t know how to deal with it under the company agreement. Do you have any suggestions on the word choices I can present to my lawyers? No matter what type of Illinois LLC you start, you should create a company agreement. Here`s the reason: yes.
While you won`t submit this document to the state, a company agreement is the best way to keep control of your Illinois LLC in the face of change or chaos. Remember that these company agreements are designed as a reference and should be verified by a lawyer. A common, fundamental misunderstanding about the single member LLC company agreement is that this document gives much more power than it actually does. In reality, your company agreement will not exceed the law, no matter what it says. Thus, you do not lose your limited liability protection simply because you do not have an agreement. And you won`t be able to circumvent the law just because you say questionable behavior (like using your business account as a personal piggy bank) is correct in your agreement. You could do it! It won`t hurt. If you take some time to read our company agreement, you can make sure that you take due account of the first steps (such as contributions) and possible possibilities (such as resolution). Your bank might want to see it, and it`s free, so you might as well have it. But please, do yourself a favor and don`t pay a lot of money for an LLC enterprise agreement with a single member.
It`s a good idea to establish a company agreement before submitting your organization articles, but the state doesn`t stop LLCs from waiting until the creation process is complete. . . .