Importance of Operating Agreement in California
An operating agreement outlines how your LLC will be run, defines member roles, management structure, and profit/loss distribution. While not required to be filed, drafting one is in the best interest of an LLC. Keep it for reference in conflicts and for banking purposes.
Registering an LLC in California
File Articles of Organization and create an operating agreement to properly register your LLC in California. Rather than filing, keep signed operating agreements with you. Hiring an attorney is advisable to ensure the agreement is thorough and legally binding.
Requirements for Operating Agreement in California
Both single and multi-member LLCs must draft and adopt the agreement outlining operations, rights/responsibilities, and liability. Every member and manager must sign it accordingly.
In conclusion, editing an operating agreement reflects an LLC’s evolving needs, contributing to an agile and successful business.