Any state will say you should, but guess what? Almost every state law states that non-compliance with LLC enterprise agreements for your LLC does not cause you to lose your liability protection. We have not yet seen a real public authority ask you to maintain an LLC company agreement. Yes, absolutely, especially if you have multiple members. Even if the state doesn`t require it, it would be ridiculous to create an LLC with another person without having an LLC enterprise agreement that you both agree on. Company agreements define how to handle disagreements, money, and technical issues such as the right of pre-emption – things that will shape the future of your business. If you`re going to do business with another person, there`s a good chance you`ll have to separate at some point. The company agreement between you will be that describes how the separation will take place. Hello, Samantha, thank you for the kind words. And I`m glad our site was so helpful. Before I deal with the theme Manager-managed vs. Member-managed, I would just like to add a note saying that she is the organizer LLC and that she keeps your documentation in order.
Since you are the one making the LLC for your son, you are the organizer of the LLC and sign the Organization`s California Articles. Your son`s name is not on the organization`s by-articles because California does not require member information in this form. So, after signing as an organizer and approving the LLC, you can sign a statement from the LLC organizer instead of the organizing meeting, resign as an LLC organizer, and appoint your son as a member. In addition, your son should sign an LLC company agreement. When it comes to Manager-Managed vs Member-managed, I think you could go both ways. You can choose to manage the LLC as a manager in the organization`s by-articles. Then sign a manager-managed company agreement in which your son appoints you as manager. Thereafter, you are the only one entitled to bind the LLC to contracts and agreements. In other words, only you will be able to act on behalf of the LLC.
However, your son, who is a member, has the power to withdraw you as a manager, because he is the only member (and does not need the agreement of other members, since there is none). However, I think a simpler option is to simply create a member-managed LLC, where your son is known as a managing member. He has all the authority and right to bind the LLC to contracts and agreements. However, you can simply be a “consultant” or an independent contractor and do what you are already doing. Supervise and manage until your son has enough experience and maturity to take charge of things on himself.. . .