The Series LLC Operating Agreement
The LLC Operating Agreement is the core document that is referred to when issues concerning the LLC need to be resolved. The LLC Operating Agreement is the most important document for your LLC. The LLC Operating Agreement reflects the agreement among the members with respect to the affairs and management of the LLC essentially governing the relationship among the members of the LLC.
The standard LLC Operating Agreement will not meet the requirements for your Series LLC. A Series LLC Operating Agreement must specifically provide for the establishment of various series with differing assets, and separate liabilities. The Series LLC Operating Agreement should make clear that each series will own separate assets, have separate rights and powers as set forth in the Operating Agreement, as well as have separate investment or business purposes. In addition, the Series LLC Operating Agreement should establish a designated series of members, managers or LLC interests having separate rights, powers, or duties with respect to specified property or obligations of the LLC or profits and losses associated with specified property or obligations.
It is extremely important to have a properly prepared Operating Agreement to fit the needs of your Series LLC and meet the requirements of the relevant state’s Series LLC statute.