OF THE MEMBERS OF JK KNOCKOUT LLC
This Action by Unanimous Written Consent is a formal way to “lock in” the rules you just created. By signing this, Joe, Jackie, and Gary officially agree to the definition of hard costs and the 10% donation process, making it a binding part of your business records.
ACTION BY UNANIMOUS WRITTEN CONSENT
OF THE MEMBERS OF JK KNOCKOUT LLC
The undersigned, being all the Members of JK Knockout LLC (the “Company”), hereby adopt the following resolutions by unanimous written consent in lieu of a formal meeting:
RESOLVED: Adoption of the “Hard Cost” Definition
The Members hereby agree that for all purposes of determining monthly distributions, “Hard Costs” shall be defined as all direct, out-of-pocket expenses paid to third-party vendors necessary for the operation of the business. This includes:
- Cost of Goods Sold (COGS), manufacturing, and packaging.
- Shipping, freight, and fulfillment fees.
- Merchant processing fees (e.g., Shopify, Stripe, PayPal).
- Documented travel and lodging for speaking engagements.
- Direct marketing and advertising spend.
- Essential business software and storage subscriptions.
RESOLVED: Charitable Donation to the Jackie Kallen Foundation
The Members reaffirm that 10% of the Net Profit (defined as Gross Revenue minus Hard Costs) shall be donated monthly to the Jackie Kallen Foundation prior to any distributions being made to the Members.
RESOLVED: Implementation of Distribution Worksheet
The Members hereby approve the use of the Monthly Distribution Worksheet to calculate and document all financial outflows. No distributions shall be issued until the worksheet for the corresponding month is reviewed and approved by a majority of the membership interest.
SIGNATURES OF MEMBERS:
JOE (40%)
Signature: __________________________ Date: __________
JACKIE (35%)
Signature: __________________________ Date: __________
GARY (25%)
Signature: __________________________ Date: __________
How to use this:
- Print and Sign: Have all three of you sign a physical copy.
- The “Green Folder”: Keep this (and your Operating Agreement) in a dedicated folder (digital or physical). This is your “Corporate Book.”
- Bank & Taxes: If you ever get audited or apply for a business loan, having these signed “Consents” proves that the business is being run professionally and that the 10% donation is a legitimate business move, not just a random gift.
Since you have Joe at 40%, Jackie at 35%, and Gary at 25%, any two of you together make a majority. Would you like me to draft a simple “Voting Ballot” template for when you need to make big decisions (like hiring or new clients) so there’s a record of who voted for what?