How can a limited liability company make operating distributions to its members?
Limited liability companies can determine how operating distributions are made to their members. This determination is spelled out in the company’s Articles of Organization. If no rule is set forth in the company’s Articles, then the default rules of the state of organization will govern. The variations on this rule are distribution on a per-capita basis, distribution on a proportionate basis based on each member’s contribution, or distribution on a per-profit share basis. To find out what the default rules are in your state, see our State Law Digest, which includes a citation to each state’s limited liability company statute. The following forms found in our Limited Liability Company Forms section relate to the topic of this article: Limited Liability Company Forms Combo Package – Limited Liability Company Forms Combo Package for use in all states. Save money with this convenient combo packages containing the most used forms and agreements needed to start and operate an LLC. Avoid hea
