The arithmetic in a North Carolina 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 furniture restoration workshop in North Carolina owned by a craftsman and two friends who funded the premises, so the members' $60,000 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.
What the profit clause pays out once the reserve is kept
For a furniture restoration workshop in North Carolina, formed by a craftsman and two friends who funded the premises, the distribution clause in a North Carolina agreement typically pays profit by ownership after a reserve the members choose. On $130,000 of profit with a 15% reserve, $110,500 goes out and the largest member receives $55,250. The worksheet shows the figure for each member from the shares above; when to distribute, and whether to hold more back, is a decision the agreement leaves to the members and this site leaves to them too.
Major decisions: the ownership that carries them
Selling the company, admitting a member and borrowing are usually reserved to a supermajority. The example sets that at 60%, which on $60,000 of capital is $36,000 that must vote yes, and with shares of 50.0%, 33.3% and 16.7% the worksheet shows which members that is. A North Carolina owner sets the threshold they and their co-members agreed; the page works it and asserts nothing about what the law requires.
Start with capital, because ownership is worked from it
An operating agreement for a North Carolina LLC is mostly numbers in blanks, and the first blanks are the contributions. The example on this page uses $30,000, $20,000 and $10,000, so the company holds $60,000 and the members own 50.0%, 33.3% and 16.7%. Enter your own capital and the worksheet returns your own shares; the point is that the ownership clause and the contribution clause can never disagree, because one is computed from the other.
Where a North Carolina agreement's rules live, and where its numbers do
Whether North Carolina requires a written operating agreement, what it must contain and what the state charges to form or maintain the company are questions for the North Carolina Secretary of State, Business Registration, 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 operating agreement llc nc
Is a North Carolina 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 North Carolina has any filing or content rule for the agreement is a question for the North Carolina Secretary of State, Business Registration 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.