An operating agreement outlines an LLC’s rules and structure. It suits the owners’ specific needs. Without one, default state rules apply which may cause disputes. It governs an LLC’s finances, ownership breakdown, voting structures, and dispute resolution. Single and multi-member LLCs should have agreements. They reinforce limited liability if lawsuits arise and ease getting loans.
Key Aspects of An Operating Agreement
- Clarifies members’ rights and responsibilities
- Covers member rights, capital contributions, distributions
- Details amendments protocols and dissolution procedures
Legal Considerations
Ensure it’s legally binding by following proper steps. Store the agreement in your records; it’s not filed with the state. Tailor the agreement to your LLC’s needs to prevent disputes and clarify structure.
Legal Services for Operating Agreements
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