Here is your JK Knockout LLC Kickoff Package. This consolidated summary organizes everything we’ve built into a single “Master Guide.”
You should print this out, have everyone sign the relevant sections, and keep it in a secure “Company Minutes” binder.
🥊 JK Knockout LLC: Kickoff Package Summary
1. The Membership Structure
The LLC is governed by a majority interest (over 50%).
- Joe: 40% (Lead Stakeholder)
- Jackie: 35%
- Gary: 25%
2. The Financial Workflow (The “Monthly Loop”)
To ensure everyone gets paid fairly and the Jackie Kallen Foundation is supported, follow this monthly sequence:
- Calculate Gross Revenue: All sales, retail, and speaking fees.
- Deduct Hard Costs: Pay all third-party vendors, COGS, shipping, and software first.
- Determine Net Profit: (Gross Revenue – Hard Costs).
- The 10% Donation: Calculate 10% of the Net Profit and send it to the Jackie Kallen Foundation.
- Distribute the Remainder: Split the remaining 90% of profit by ownership % (40/35/25).
3. Key Documents Included
| Document | Purpose |
|---|---|
| Operating Agreement | The “Constitution.” Sets the 40/35/25 split and buy-out rights. |
| Hard Cost Consent | The “Rulebook.” Defines exactly what expenses come out before pay. |
| Distribution Worksheet | The “Calculator.” The monthly tool to track the 10% donation. |
| Member Action Ballot | The “Voting Booth.” Used for big decisions (new clients/large spends). |
4. Legal Safety: The Buy-Out Clause
As we established in your agreement, if a member passes away:
- The remaining members have the first right to buy that member’s shares.
- This prevents the business from being run by an outside heir who doesn’t understand the merchandising or speaking industry.
- The heirs are still protected because they receive the fair market value for those shares.
5. Final Checklist for Joe, Jackie, and Gary
- [ ] Finalize the State: Ensure your Articles of Organization are filed in your chosen state.
- [ ] Get an EIN: If you haven’t already, get your Employer Identification Number from the IRS (it’s free).
- [ ] Open the Bank Account: Take the signed Operating Agreement and EIN to the bank.
- [ ] Set the “Cap”: Decide on a dollar amount (e.g., $1,000) where a Member Action Ballot becomes mandatory.