Why should I pay for an Operating Agreement when I can use a sample Operating Agreement or template Operating Agreement for free?
A sample LLC Operating Agreement is typically an Operating Agreement that has been customized to the needs of another LLC and its members. A sample Operating Agreement is generally useful to review if you have a question as to how the document should be formatted or are looking for a certain provision or language. Other than an attorney with experiencing drafting LLC Operating Agreements, it is not advisable to convert a sample LLC Operating Agreement into your LLC Operating Agreement.
The LLC Operating Agreement is the LLC’s most important document. 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. Therefore, the LLC Operating Agreement becomes the core document that is referred to when issues concerning the LLC need to be resolved. As a result, it is unwise and generally ill advised to use a sample LLC Operating Agreement as a model for your LLC Operating Agreement unless you are an attorney with experience drafting LLC Operating Agreements.
With some legal documents, such as nondisclosure agreements and consulting agreements, which are not as complicated and do not have the intricate legal and tax issues of the LLC Operating Agreement, using a sample agreement as a basis for drafting your own agreement may not be as imprudent as sample Operating Agreement. Remember, the LLC Operating Agreement is the core document that 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. Unless you are an attorney experienced in drafting LLC Operating Agreements, using a sample agreement as a basis for drafting your own agreement is unwise and may end up jeopardizing your business.
