We at Prestige Auditors aim to make your life easier, your business more reliable, and income way higher, which means that we should discuss each and every aspect of the business world whether it’s a positive or negative one. Unfortunately, this day is not dedicated to tax exemptions, business audits and successful careers, today we are going to talk about death, and what awaits a business after its owner passes away. But wait, this is not a pessimistic and a heartbreaking blog; this is all about reassurance, comfort and guarantees that you can easily establish; so, read our blog, and grasp what you can do to provide the comfort you’re willing to have.
At first, let’s look at an LLC’s structure, at the basics that you should know before shifting to the actual topic.
- Limited Liability Company, more popular as LLC, consists of LLC owners, who are every so often considered LLC members.
- A legitimate LLC should always have a properly created and organized Articles of Organization, and preferably an Operating Agreement, which means that there’s tons of work to do before thinking about life or death and last wills; it’s not the perfect time to die!
- LLC Members have their contribution in both the management and finance world, which means that an LLC owner participates in everyday business operations, and has shares in the face of assets, profits, debts and losses.
Now that you know the basics of forming an LLC, let’s connect the above-mentioned facts and understand how we can regulate this problem. Since Operating agreements appear to be the regulating and normalizing part of your business operations, they are vitally important for your business. Without it, no rule would be established in your company, which would in turn harm your business!
Operating Agreements as Roadmaps
As we said, this document is meant to establish the inner peace of your company, because success loves serenity, stillness and composure. But did you know that these documents can help you overcome your greatest fear, the fear of leaving nothing behind, the fear of being on your last legs, and the fear of losing your business and all the efforts that you invested in?
Without sounding too dramatic, let’s move on:
If LLC members want to be in charge of their shares, finances and interests even when they’re sleeping with the fishes, they should point out all the details that matter to them. For example, they should specify whether they want their shares to be distributed among their loyal colleagues – other LLC members, or their shares are fated to become the property of their heirs; as we said, operating agreements are based on LLC members’ needs, which means that the conditions can be easily discussed, agreed and brought up to a fair deal.
What If My Business doesn’t have an Operating Agreement?
Then, just like any other business in the United States, yours will also follow all the laws established by the state you’re operating your business in. But again, they’re too general, and sometimes you simply can’t adhere to them due to lack of accuracy and exactness.
So, if you’re worried about your and your business’ future, make sure you include all the conditions in your operating agreements. This is one of the best ways to ensure your shares are in good hands, and that the money on which your family highly depends is safe and sound, and always will be!