The arithmetic in a Kentucky LLC operating agreement is small, and it is where most home-drafted agreements disagree with themselves: an ownership clause that does not follow from the contributions, a distribution clause that ignores the reserve, a voting threshold nobody translated into names. This page works those figures for a horse boarding stable in Kentucky owned by a trainer, a landowner and a vet who put in cash, so the members' $75,000 of capital, their profit and their chosen thresholds come out as shares, distributions and a vote that agree with each other. The free worksheet on this site does the same from your own figures with no account. What the state requires the agreement to say, and what it charges, are the filing office's and your attorney's; this page publishes neither.
A decision threshold, turned into the members it takes
For a horse boarding stable in Kentucky, formed by a trainer, a landowner and a vet who put in cash, the clause that says what needs a supermajority is written as a percentage, and the worksheet makes it concrete: 70% of $75,000 is $52,500 of capital that must vote yes. Read against shares of 33.3%, 40.0% and 26.7%, that names which members can carry a decision and which cannot block one. The threshold in a Kentucky agreement is the members' own; this page publishes no rule about where it should sit.
Who is in the Kentucky company, and what they put in
The members of a Kentucky LLC and their contributions are the first thing the agreement records and the figure every other clause depends on. On this page's example the three members put in $25,000, $30,000 and $20,000, a total of $75,000, and the worksheet returns shares of 33.3%, 40.0% and 26.7%. Members can agree a different split; if they do, the agreement records the agreed one and the worksheet works everything downstream from it.
Profit, reserve and distribution, worked in that order
Distributions are not profit: the company keeps a reserve first, and the members split the remainder by share. The example keeps 20% of $80,000, leaving $64,000 to distribute, of which the largest member is owed $25,600. A Kentucky owner entering their own profit and reserve gets their own figures on the page, with nothing stored and no account; the paid plan is only for keeping the record year on year.
Where a Kentucky agreement's rules live, and where its numbers do
Whether Kentucky requires a written operating agreement, what it must contain and what the state charges to form or maintain the company are questions for the Kentucky Secretary of State, Business Services, named below, and for your attorney; this page publishes no rule text, no fee and no legal advice. What it does publish is the arithmetic the agreement records: the shares from the contributions, the distributions from the profit and the capital a decision needs, worked free on this site from the members' own figures, and kept against the company by LLC Lane Pro when the members want the record.
Questions people ask about kentucky llc operating agreement
Is a Kentucky LLC operating agreement filed with the state?
Generally the agreement is a private document the members keep, and the articles are what the state holds; whether Kentucky has any filing or content rule for the agreement is a question for the Kentucky Secretary of State, Business Services and your attorney, not for this site.
What figures should be worked before the agreement is signed?
Each member's share from the contributions, each member's distribution on a given profit after the reserve, and the capital a major decision needs at the chosen threshold, which names the members it takes. The free worksheet works all three.
What does LLC Lane Pro add to the free worksheet?
The record: every company, member and share kept and dated, every agreement and amendment with its status, your name on the paperwork and an export when the bank or the accountant asks. The worksheet itself stays free.