A Wisconsin limited liability company operating agreement should be placed in effect better to protect the assets of the company’s members and establish this entity’s tax identity. This kind of contract should be as inclusive as possible since it must cover details such as the ownership percentage each member enjoys, his or her voting rights, and the types of asset protection available from the company’s status.
Company policies, such as the type of business it will conduct, the tax status it shall hold as an entity, and the manner in which the agreement may be amended, must also be declared in this paperwork. As always, when developing a contract that shall define a company, a significant effort in research will be expected to ensure that its content will be accurate to what the signature member will comply with.
Is It Required In Wisconsin?
No. Wisconsin has no statutes requiring a multi-member or a single-member limited liability company to place an operating agreement in effect. This means that even an oral agreement can be made however, only a written and signed operating agreement can offer Wisconsin LLC members a reasonable amount of protection.
Single-Member LLC operating agreement – The contract that a Wisconsin limited liability company having only one (1) person needs to establish its procedures.
Multi-Member LLC operating agreement – Wisconsin limited liability companies may use this downloadable file only if they have two (2) or more members.
“(13) ’Operating agreement’ means the agreement, whether or not referred to as an operating agreement and whether oral, implied, in a record, or in any combination thereof, of all the members of a limited liability company, including a sole member, concerning the matters described in s. 183.0105 (1). The term includes the agreement as amended or restated.”