Good morning, Matt. I recently filed for my brand new LLC company and I`m partnering with a friend of mine, I accidentally thought of it as a member of management, because it`s my business I didn`t have to add to myself, but apparently it`s wrong. So I now have an LLC that shows me a lot as a registry agent and my friend as a member of management. How can I add to this as an executive member? Do I fulfill an enterprise contract and hire our two names? The bank would not allow me to open an account because he is the only one who is an executive member. A newcomer to my end. If you want the Texas LLC corporate agreement to be tailored to you and the specifications of other LLC members, we recommend that you hire a business lawyer. Sometimes anything about a lawyer can be like a whole other language. We will simplify exactly what an enterprise agreement is and does. You may have heard agreements for LLCs called corporate agreements or LLC regulations, but these are a bit archaic, at least in Texas, and “Company Agreement” is the term used in the Texas business organizing code and the statutes that govern LLC laws, and is now the preferred term. An enterprise contract is a contract signed by LLC members – and sometimes LLC executives – to ensure the governance and internal management of the LLC. The enterprise agreement defines the rights and obligations of members and managers and serves as a model for the management of the LLC.
statutes.capitol.texas.gov/Docs/BO/htm/BO.3.htm#D statutes.capitol.texas.gov/Docs/BO/htm/BO.3.htm#E statutes.capitol.texas.gov/Docs/BO/htm/BO.3.htm#F statutes.capitol.texas.gov/Docs/BO/htm/BO.101.htm#101.052 statutes.capitol.texas.gov/Docs/BO/htm/BO.101.htm#101.053 statutes.capitol.texas.gov/Docs/BO/htm/BO.101.htm#101.054 statutes.capitol.texas.gov/Docs/BO/htm/BO.101.htm#101.055 As mentioned above, one of the main advantages of an LLC is the liability protection it affords its members. This means that LLC members are not personally responsible for the debts incurred for the company. However, this is only the case if the owners of LLC comply with certain formalities.