Operating Agreements and Bylaws
An operating agreement outlines decisions for an LLC. Some states require an operating agreement for LLCs. Operating agreements protect assets and business. They save members time and money by preventing misunderstandings. Corporations have bylaws instead of operating agreements. Bylaws help corporations comply with laws. Most new companies draft operating agreements or bylaws. You can amend an operating agreement with member approval. Single-member LLCs do not have to file operating agreements. However, having one protects your interests. Without one, some states default to even profit splits despite unequal contributions.
Do I Need an Operating Agreement for an S Corp?
An operating agreement outlines decisions for an LLC. Some states require an operating agreement for LLCs. Operating agreements protect assets and business. They save members time and money by preventing misunderstandings. Most new companies draft operating agreements or bylaws. You can amend an operating agreement with member approval. Single-member LLCs do not have to file operating agreements. However, having one protects your interests. Without one, some states default to even profit splits despite unequal contributions.