How is an LLC created?
After submitting Articles of Organization to the Secretary of State’s office, the members enter into a written agreement, called the “Operating Agreement”, about how the LLC will be run, who is in charge of running it, how profits will be divided up, etc. If there is no operating agreement, then the “default” rules for running an LLC kick in. These default rules are found in the Indiana LLC statute. Generally speaking, it is better to have an operating agreement than it is to rely on the default rules, if only because it forces the members to think about many practical aspects of running a business at the outset and then agree about such matters before real money is at stake.
