Every Florida LLC should have an Operating Agreement. It is a written contract between the LLC Members (owners) with detailed information about LLC ownership structure and how the LLC is managed. These agreements are essential for regulating members’ contributions, distributions of profits, and decision making within the LLC.
You can download and customize your own Operating Agreement using a free template. We recommend using the Member-managed Operating Agreement as this is the most common type of LLC management. For single-member LLCs with one owner, it outlines basic details like structure, management, and distribution of profits/losses. For LLCs with multiple members, the Agreement determines ownership rights and responsibilities of each member, so everyone knows their roles and what they are entitled to.
Legal Standing and Business Relationships
Having an Agreement shows commitment to running a professional business, which makes it easier to establish relationships with banks, investors, etc. For single-member LLCs, an Agreement strengthens your legal position should a creditor try to take you to court.
Seeking Legal Advice
When setting up your company, it’s beneficial to seek legal advice from a Florida LLC Business litigation attorney.
LLC Operating Agreement Regulations
Single-Member LLCs
For single-member LLCs, an Agreement outlines basic details like the LLC’s structure, management, and how profits and losses are distributed. As there is only one member, it typically does not address issues like voting rights or ownership shares.
Multi-Member LLCs
For LLCs with more than one member, an Operating Agreement is crucial in determining each person’s rights and responsibilities, helping to prevent future disputes.
Requirement of Operating Agreements in Florida
Florida doesn’t require that you have an Operating Agreement for your Limited Liability Company (LLC), but it is strongly recommended that you create one. An LLC with two or more members should have an operating agreement, while a Single-Member LLC (SMLLC) operating agreement does not need to be filed with the state.
Notarization of Operating Agreements
The text provided does not mention whether a Florida LLC Operating Agreement needs to be notarized. However, this might be a good question to raise with a Florida LLC Business litigation attorney.