Operating Agreement

The LLC Operating Agreement Agreement

LLC Operating Agreement


Asset Protection Operating Agreement

LLC’s and their operating agreements are NOT created equal. Most of them don’t take advantage of the benefits designed for the client because the incorporators, and business consultants, are not well informed.

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Q: Which is better… Manager-managed? Member-managed?

A: Manager-managed LLC:

Charging order protection secures assets from hostile creditor threats.
The charging order protection is what triggers the hostile creditor to be liable for an income tax BEFORE collecting on your assets. This is called “phantom income,” and it’s successfully restricts the assets from the hostile creditor ONLY when the LLC is manager-managed.

Avoid Discussing

Q: Why do most incorporators avoid discussing the charging order protection?

A: They don’t want to confuse you. They know you’re most likely deciding between a C Corporation and an LLC. They don’t want to lose the sale and have you walking away scratching your head. So, they don’t mention it. They prefer to limit your choices and make the decision simple stupid.
Our clients seek to learn and do more, and that’s why they come to us in the first place.

Because 99% of all incorporators use the same operating agreements time and time again. It’s a broken record. And although this objective is noble in theory, it leaves clients at a disadvantage. Most incorporators are too lazy to draft an original operating agreement.

Operating Agreement Drafted By A CPA, Tax Attorney $200

The LLC operating agreement drafted for asset protection. Possess an operating agreement, for an LLC, that offers the utmost asset protection and charging order protection.