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An LLC Operating Agreement protects personal assets by enforcing the separation between those assets and the business's assets. This is often referred to as maintaining the corporate veil. In case of a legal dispute or financial trouble in the business, your personal savings, property, and other assets would be protected from liabilities.
The operating agreement can also include provisions for the transfer of a member's interest upon their death. Such provisions allow for a direct transfer of interest to a designated beneficiary, bypassing the often lengthy and costly probate process. This ensures a smooth transition and continuity of the business.
Published: Jun 7, 2023
Updated: May 26, 2023
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