Widget World (WW) is an idea 4 friends created in their garage. They agree they will be even partners in the business and share "everything" equally. They expect that each person will have to "kick in" $2000 at first to start the business. Also, each member is expected to work 10 hours a week to manufacture the widgets they need to sell. They think they can produce 100 widgets a week and will charge $10 per widget.


They have heard they need to have an Operating Agreement and find one that seems to be good from the internet in the resources provided. They print off the Agreement in PDF form and mark the appropriate boxes.
 

Operating Agreement that will be the "foundation" of your organization.
Specifically, address the following questions (at the beginning or end of your paper and reference the Operating Agreement section/paragraph/etc.) and answer according to the Operating Agreement provided in the resource you created.
Let's say WW LLC sells $1000 worth of widgets. If there are 4 members, how much will each member get?
When will the 4 members actually receive their money from the sale of the widgets?
What happens if a machine breaks and the 4 members need to fix and pay a $5,000 bill? How much does each person pay? Or does the Company have retained earnings?
What happens if Member A doesn't work as hard as everyone else (He often only works 5 hours/week... and even if he does, produces half the widgets as everyone else!)?
What happens if Member B wants to quit the business because he doesn't want to commit 10 hours a week?
What happens if Member C dies and has a wife? Does she become a member?

Answer rating: 100% (QA)

Operating Agreement How much will each member get if WW LLC sells 1000 worth of widgets According to the Operating Agreement the profits of WW LLC wil... View the full answer