What should I do with the LLC Operating Agreement once I receive it?
Review the Operating Agreement
Once you receive a copy of the LLC Operating Agreement, it is very important that you review the agreement thoroughly and make sure that you understand all the provisions contained in the agreement. If there is one or more provisions that you don’t understand or have questions about, you should contact the person who drafted the agreement or the person who was in charge of having it drafted. Since the LLC Operating Agreement is the central document that is referred to when issues concerning the LLC need to be resolved, it is important that each member of the LLC understand the agreement and verify that the operational, management, and financial terms that have been agreed upon which have formed the basis for the business arrangement have been properly and accurately documented in the Operating Agreement. Otherwise, if you wait to review the Operating Agreement once an issue arises with a member or manager, it will likely be too late.
Sign the Operating Agreement
Once all the members have reviewed the drafted Operating Agreement and have confirmed that the agreement reflects the terms of their arrangement, each member should sign the signature page which can be found at the end of the agreement. All members must sign the LLC Operating Agreement in order for it to be binding. Each member should sign and date their own signature page. Each member should then send their signed “signature page” to management. Once management has received all the signed signature pages from the members of the LLC, management should send the final LLC Operating Agreement with all the signed signature pages to the members for their records. If the manager or managers or your LLC does not do so shortly after the Operating Agreement has been signed by the members, it is important to contact management and have them do so.
Store the Operating Agreement
Once you receive a copy of the signed LLC Operating Agreement, it is important the you keep a copy of the signed LLC Operating Agreement for your records. Keeping an electronic copy of the signed agreement may make finding the agreement in the future somewhat easier.
