Still Time to Form a Nevada Limited-Liability Company in 2013 Using New Digital Operating Agreement Software from Secretary of State; New Video from Harvard Focuses on Nevada's Use of Software
Even with just a few days left until the New Year, there's still time to create a Nevada limited-liability company (LLC) in 2013. The once burdensome process has been streamlined, and can be completed in less than an hour in many cases, thanks to the free Nevada SilverFlume Digital Operating Agreement (OA) software available at https://www.nvsilverflume.gov/digitaloa/home. A six-minute video explaining the use of Digital OAs, produced by Harvard University's Berkman Center for Law and Society, focuses on Nevada's use of the software and can be viewed at http://www.youtube.com/watch?v=j7OwxAVkYlo&feature=youtu.be.
"The Digital Operating Agreement de-mystifies the process of creating a limited-liability company and makes it easy for entrepreneurs and small businesses to create an LLC, "said Nevada Secretary of State Ross Miller, who is the first Secretary of State in the country to offer a resource like this. "A process that might otherwise takes days or weeks to complete, and require expensive outside expertise can now be completed quickly and easily. This is about using the resources of government to improve the business climate by removing obstacles.
"The Digital OA software isn't just for formation of an LLC; it also creates a platform for the ongoing operations of the company in a manner prescribed by the operating agreement. Using Digital OA you can form an LLC with partners all over the world who work together in a virtual environment. Meetings of board members or managers can be conducted online while meeting all the requirements of the LLC."
The Digital OA software provides a complete operating agreement for a new LLC from the initial steps of identifying company members or managers and their specific roles, including:
• Defining the LLC and its business purpose, including entering members' or managers' titles and roles.
• Establishing a value, agreed upon by all members or managers, of all cash and non-cash contributions, and defining the allocation of profits by way of a percentage-based formula.
• Defining the duties and responsibilities including members' or managers' personal liability, fiduciary duty, financial records and capital accounts.
• Withdrawal from the LLC or a transfer of interest in the LLC either voluntarily or involuntarily.
• Default provisions of the Operating Agreement including amendments to the agreement of articles of organization, indemnification, approval of certain transactions, and dissolution.
The Digital OA concept is a best-practices model due to its ability to streamline complicated processes that hinder economic growth, and in its potential to redefine the relationship between government and the business constituency. Digital OA embodies one of the stated goals of the Nevada Secretary of State's office - "encourage the development and diversification of the state's business community by providing innovative, expeditious and cost-effective services."
Nevada Secretary of State's Office