LLC Contract (Single Class, Manager-Managed)

The LLC Contract (Single Class, Manager-Managed) under USA law is a legal template specifically designed for limited liability companies (LLCs) operating in the United States. This contract establishes the framework and outlines the terms and conditions for the formation and operation of an LLC structured as a single class and managed by designated managers.

This legal template begins by clearly defining the LLC's key details, such as its name, purpose, principal place of business, duration, and the state under which it is formed. It also lays out the initial capital contributions made by members and addresses any future capital contributions.

The contract further stipulates the roles and responsibilities of the LLC's managers, including decision-making authority, fiduciary duties, and potential conflicts of interest. It also delineates the scope of managers' powers and responsibilities, identifying key management activities such as hiring employees, executing contracts, and representing the LLC in legal matters.

Additionally, the contract outlines the rights and obligations of the members, including their entitlement to distributions of profits and losses, voting rights, and membership transferability provisions. It may also cover provisions related to member meetings, annual reports, and how the LLC's ownership interests can be sold or assigned.

To ensure transparency and effective governance, the template may address record-keeping requirements, financial reporting obligations, and the procedures for member or manager meetings. It may also include provisions to resolve disputes through mediation, arbitration, or litigation.

Overall, the LLC Contract (Single Class, Manager-Managed) is a comprehensive legal document that establishes the fundamental framework for an LLC's formation, governance, and operations within the context of USA law. It aims to protect the interests of both managers and members, provide clarity on decision-making authority, and promote transparency and stability in the LLC's affairs.