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Copyright 2002-2019, LegalContracts.com <br />What is an allocation? <br />Where an LLC is classified as a partnership for federal income tax purposes, profits and losses are <br />allocated among members. The LLC itself will not pay income tax in that case. <br /> <br />What are the benefits of requiring unanimous agreement? <br />Requiring unanimous consent is typically reserved for issues critical to the company. By requiring <br />unanimous consent, all Member's Interests are protected against unreasonable majority decisions. <br /> <br />Do I need witnesses? <br />It is a good idea to have your signatures witnessed even though most documents and contracts do not <br />require a witness for them to be legally valid. <br /> <br />Many banks and other institutions have their own internal policies about signing requirements, and may <br />refuse to accept documents that are not witnessed regardless of the fact that the documents are legally <br />valid. If you want to avoid bureaucratic hold-ups, it may be a good idea to have your document <br />witnessed. <br /> <br />How do I choose a witness? <br />Generally, the person you choose to witness a document should be a neutral third party with no financial <br />or other interest in the agreement. <br /> <br />Ideally, a witness will observe the parties signing the document and sign the document as proof that they <br />witnessed the parties signing. The witness is not usually required to know or understand the contents of <br />the document. <br /> <br />LLC Operating Agreement Page 3 of 3 <br />1003 W Richland Ave Units 18, <br />19, 20 & 21 - 101117246 & <br />7255-576/19/2024