How to Manage Members of an LLC
Managing members of an limited liability company (LLC) can be a hard task if there is no business structure. When forming a LLC, most owners draft an operating agreement, which allows them to structure their business to eliminate confusion. An operating agreement is not required in many states. However, it is highly recomended that every LLC has one on file. This agreement delineates each manager's responsibility and pay rate. The operating agreement also manages how much of the company each owner shares and what happens when an owner decides to leave the company.
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Instructions
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Form a meeting with the current members of an existing LLC. To establish control over the LLC, all members must meet to decide what should be included in the operating agreement. This requires that every member be in attendance during this first meeting. The first meeting should address the responsibilities of each member as well as inform them about how they should be paid.
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Write out a formal operating agreement for your LLC. Although not required by all states, it is imperative to write the agreement to avoid confusion and ensure smooth business operation of your LLC. The operating agreement determines each members' responsibilities and how they are paid from the business. Include each member's address as well as how the LLC will continue running if a member leaves the company. Give a copy of this agreement to each member for him to review at his leisure.
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File the operating agreement with your other LLC legal documents. You should have a copy of your articles of organization. Include the operating agreement together with this document. Print out a copy as well as burn a copy onto a CD.
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Hold regular meetings with LLC members. At a minimum, a year should lapse between each meeting of all members of the LLC. Appoint someone to record the minutes and file a hard copy of the minutes along with your articles of organization and operating agreement.
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