LLC Contract (Common and Preferred Units, Board-Managed)

The LLC Contract (Common and Preferred Units, Board-Managed) is a legal template specifically designed for Limited Liability Companies (LLCs) operating under the jurisdiction of United States law. This template outlines the terms and conditions governing the relationships and obligations between the members and managers of an LLC.

The contract addresses the allocation and ownership of common and preferred units within the LLC. It clearly defines the rights, privileges, and responsibilities associated with each type of unit and establishes the agreed-upon procedures for their issuance, transfer, and redemption.

One key feature of this template is its emphasis on board-managed governance. It delineates the decision-making authority and duties of the board of managers, providing guidance on matters such as quorum requirements, voting procedures, and the appointment and removal of board members. Additionally, it may include provisions for the role and responsibilities of executive officers and committees within the LLC.

This legal template ensures compliance with applicable USA laws and regulations governing LLCs, including state-specific requirements if applicable. It covers essential topics relating to member rights and obligations, capital contributions, profit/loss distribution, and dispute resolution mechanisms, among others.

By utilizing this comprehensive legal template, LLC owners can establish a solid framework for running their business, protecting the rights and interests of all members, and promoting effective decision-making and corporate governance within the organization.