Why You Need a LLC Operating Agreement?
The LLC operating agreement is the most important document for your LLC. The LLC operating agreement is the core document that is referred to when issues concerning the limited liability company (“LLC”) need to be resolved. Without the formality of an LLC Operating Agreement, the basic operation of the LLC would be governed by state law, which may not be advantageous to the LLC, its members, or the business it conducts. The LLC operating agreement reflects the agreement between the members with respect to the affairs and management of the LLC and governs the relationship amongst the members of the LLC. With an LLC operating agreement, members are provided with a clear set of rules that all members have agreed, therefore greatly reducing the likelihood of a disagreement between members in the future. A LLC operating agreement will also greatly reduce financial and management misunderstandings and make sure your LLC is governed by your own rules -- not default rules created by your state.
MyLLCAgreement.com is the only place for business owners to get a professionally generated customized LLC operating agreements in a matter of minutes. If you don’t want to spend thousands of dollars on a lawyer and don’t trust outdated internet forms, then let MyLLCAgreement.com help you create your customized LLC operating agreement. Then you can focus on the good stuff like the road to success!
The LLC operating agreement does not have to be filed with any state agency. All states will enforce valid operating agreements entered into among LLC members. The operating agreement will only be enforced against the persons who are parties to the agreement. Therefore, it is extremely important that all members of an LLC sign the operating agreement.
SINGLE MEMBER LIMITED LIABILITY COMPANY
It is extremely important that you create an operating agreement to separate yourself as an individual from your LLC, even if you are the sole owner (“member”) of your LLC. Without the formality of an agreement, the LLC can closely resemble a sole proprietorship, which does not limit your personal liability for business debts of the LLC. In addition, without an LLC operating agreement, the basic operation of the LLC would be governed by state law, which may not be advantageous to the LLC, it members, or the business it conducts. In fact, some states like New York require an LLC to have an operating agreement.
The operating agreement governs the operation and management of the LLC. The agreement should also reflect the member's financial contribution to the LLC and the value of that contribution.
MULTI-MEMBER LIMITED LIABILITY COMPANY
It is extremely important that you create an operating agreement for your LLC entity. Without the formality of an agreement, the basic operation of the LLC would be governed by state law, which may not be advantageous to the LLC, it members, or the business it conducts.
The operating agreement governs the operation and management of the LLC. It describes the business and economic arrangement of the members. The LLC agreement generally specifies, among other things, the business name, the official business address, the identities of the members, the way in which cash is distributed to the members, the way in which profits and losses are to be divided between the members, and how the company will be managed. The agreement should also reflect each member’s financial contributions to the LLC and the member’s ownership interests.