MULTI-MEMBER. (Applies ONLY if Multi-Member): The Company shall maintain a “capital account” for the Members in in line with Section 704(b) of the Internal Revenue Code and Treasury Regulation Section 1.704-1(b)(2)(iv). Member percentage interests refers to the ownership percentage as mentioned in the Company Details section of this agreement (Section 1). In every fiscal year, net profits and losses of the Company (not including capital transactions), whether loss or gain shall be credited or deducted to the capital accounts of each Member in an equal proportion to the Members’ percentage interests. Net profits gained by the Company from any capital transaction will be shared in the following order based on priority
Appears in 7 contracts
Samples: Limited Liability Company Operating Agreement, Limited Liability Company Operating Agreement, Ohio Limited Liability Company Operating Agreement
