Yes, yes. While you do not submit this document with the state, an enterprise agreement is the best way to keep control of your Minnesota LLC in the face of change or chaos. The Minnesota LLC Enterprise Agreement is a written legal document that governs the business relationship between LLC owners and LLC members. Thus, owners can use the agreement to determine how they participate in profits and losses, how they manage an owner who leaves the business and related issues. These agreements also concern the rights and obligations of executives, the conduct of the company`s activities and much more. The fact is that it is true that LLC members are not required to hire a lawyer to design their corporate agreement or other LLC governance documents. However, a Minnesota business lawyer familiar with the Revised LLC Act will understand the standard provisions of the law, advise you whether these standard provisions are useful to you and guide you through the process of developing an enterprise agreement that meets your specific needs. Often, Minnesota business lawyers can design a business agreement for a predictable and reasonable lump sum. MEMORANDUMTO: Bibi Black, Legal Advisor, Office of Minnesota Secretary of State FROM: Partnerships and Limited Liability Companies Committee of the Minnesota State Bar Association Business Law Section RE: Impact of Chapter 322C on Limited Liability companies currently operating under Chapter 322B DATE: June 23, 2017 The LLC member control agreement has always been important, though optional, part of Minnesota LLCs. The new law changes the name of this important agreement among the company`s members into an “enterprise agreement,” but the difference is more than semantic.
As a general rule, the enterprise agreement covers all aspects of the relationship between LLC members and the company, the rights and obligations of the people who act as managers of the company, and the activities and behaviour of the company. If the old member control agreement was written and signed by the members, the operating contract may be oral or even tacit. This likely means that any oral or written communication between members may fall within the definition of the enterprise agreement and would be enforceable against members. For example, if a contractor has created an LLC under the new law and tells an acquaintance that he or she will become a member for the provision of services to the business, that person becomes a member after completion of these services if these services have been concluded despite the absence of a written agreement. Standard distribution and profit rights. In point 322B, unless otherwise required by a member control agreement, the distributions of cash or other assets of an LLC, including distributions made after the end of an LLC, are to be allocated in proportion to the value of each member`s contribution to the LLC. Profits and losses must be distributed in the same way. Myth: I am the only member of my LLC; I don`t need an enterprise agreement. It`s recommended by the state. According to the statutes of Minnesota Section 322 C.0102 Subd. 17, every Minnesota LLC is encouraged to have an enterprise agreement, whether oral, written or implied (or a combination of it) NOTE: If the formation of a Minnesota Limited liability company, which will be a “professional business,” the additional language is required in your articles. A professional company must indicate that the company chooses to operate under section 319B.01 to 319B.12 or that the company decides to operate and is subject to the Minnesota Firms Act.