What is the difference between a “form” LLC Operating Agreement and a “customized” LLC Operating Agreement?
The LLC Operating Agreement is the LLC’s most important document. 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 reflects the agreement among the members with respect to the affairs and management of the LLC, as well as governs the relationship amongst the members of the LLC.
Because of the inherent flexibilities of LLCs and the freedom offered to LLCs by state statutes to conduct its business in the manner most advantageous for its owners, the owners are largely free to determine how their LLC will be organized, managed, controlled, and financially structured by adopting a LLC Operating Agreement.
With this in mind, companies like www.myllcagreement.com have developed technology to offer LLC owners the ability to customize their LLC Operating Agreement in minutes to meet the needs of their business without having to spend thousands of dollars on an attorney. While not all legal self-help sites offer the same level of customization, most online LLC Operating agreements available for sale are generic type fill-in the blank forms. These forms tend to be inadequate and may offer more harm than good. “Form” type LLC Operating Agreements are not customized to your business and typically do not allow you to customize the agreement to satisfy the needs of the business which could end up jeopardizing your business. For example, if the online company selling you an Operating Agreement provides you the length of the agreement before purchasing, then the agreement you will receive will certainly be a “form” type agreement that will not be customized to your business needs. Remember, most LLC state statutes will default to the LLC Operating Agreement when determining how issues involving the LLC and its member should be handled. Thus, if the Operating Agreement you are using is not customized to the needs of the business and does not mirror the members’ economic arrangement, you may be looking at costly and very time consuming litigation as the only means to settle a dispute amongst the members.
MyLLCAgreement was created by top law firm attorneys who spent the past three years reviewing thousands of LLC Operating Agreements and developing their “customization” technology, which generates a customized LLC Operating Agreement compliant with federal income tax laws and state rules. Each LLC Operating Agreement in uniquely tailored to the needs of each user’s business. No two agreements are the same – with over 6200 potential customization scenarios, MyLLCAgreement.com offers its customers a high quality and cost effective alternative to a law firm. While MyLLCAgreement is not a law firm and still encourages all its customers to seek the advice of an attorney if so desired, by receiving their agreement online, the business owner can save money that would be better spent on their own venture. Even if a customer elects to hire an attorney to review the agreement, the time required by the attorney would be a quarter of the time it would take the attorney to draft the agreement thus saving the customer hundreds if not thousands of dollars.
