The Limited Liability Company is a legal entity that provides the protection from personal liability comparable to that of a corporation but the ease of formation and management of a sole proprietorship or partnership.
The formation of an Oklahoma Limited Liability Company is accomplished by filing "Articles Of Organization" with the Oklahoma Secretary Of State. When the Limited Liability Company's "Articles Of Organization" are accepted by the Oklahoma Secretary Of State and officially filed the Limited Liability Company comes into existence as a separate legal entity.
The typical set of documents drafted for formation of the Limited Liability Company are comprised of: (1) The "Member's Agreement" (2) The "Operating Agreement" and (3) The "Articles Of Organization".
The Member's Agreement is a must for a multi-member Limited Liability Company. The Limited Liability Company Member's Agreement is the document that governs the member's duties and responsibilities to each other in the formation and operation of the Limited Liability Company. The Member's Agreement contains provisions covering such subjects as; Non-Compete Clause, Contribution of capital to the venture; Manner of dissolution and how value at time of dissolution will be made; How retiring or dying member's interest is valued and distributed; How the members will contribute to the future potential needs of the business, and much more.
The Operating Agreement is a critically important document for a multi-member Limited Liability Company. This document governs how the Limited Liability Company will be run and the powers and duties of the participants. This document addresses such topics as; How the manager(s) and other officers are selected, the duration and powers of their office, Who is empowered to sign documents such as deeds, promissory notes, contracts, checks, bills of sale, and other such legal documents.
The Articles of Organization are the documents filed with the Secretary of State to form the limited liability company. This document covers such topics as; The name of the limited liability company, designates the legal agent of the company, specifies the legal address of the company and more.
People who are forming a Limited Liability Company should obtain professional advice and assistance when doing so. Topics such as; How capital is contributed, What to do when a member dies, What to do when a member divorces, What to do when a member retires, How to expel a member and what to do with that member's interest when expelled, What happens if a member goes bankrupt, What if a member is sued, Can a member sell his/her interest, and others are some of the topics which must be covered to prevent future problems.
Limited Liability Companies in Oklahoma are an extremely versatile and useful form of entity under which to do business. They are relatively inexpensive to form while providing a great deal of protection to the people engaged in the business. The Ritchie Law Firm has assisted in the formation of numerous Oklahoma Limited Liability Companies for a multitude of clients and uses ranging from a husband and wife small retail business to groups of investors operating as a limited liability company to own and manage rental properties.