An LLC operating agreement will assist you in protecting your limited liability status, fend off financial and management disagreements, and ensure your business is controlled and operated under its own set of rules by your own rule, in contrast to the default rules initiated by your state. Some states may not legally require your LLC to implement an operating agreement, it is advisable to have one to operate your LLC, even if you are the individual owner of your company.
Operating Agreements Offer Protection to Your Limited Liability Status
The most substantial reason to create an operating agreement for your LLC is to make sure that your limited personal liability will be acknowledge by the courts. This is especially important in a sole LLC, because without the convention of an operating agreement, the LLC may present itself as a sole proprietorship. Enacting a formal written operating agreement will offer integrity to your LLC’s distinct existence.
What Should You Incorporate into Your Operating Agreement?
There are a plethora of components that should be included in your LLC operating agreement, and some components will factor on your business’s unique situation and requirements. The majority of operating agreements encompass the following:
- Member Financial Interest
- Corporate Governance
- Corporate Officer’s Power and Compensation
- Arbitration/Forum Selection
- Departure of Members
- Books and Records Audit
If you require assistance establishing your LLC Operating Agreement and would like to discuss your individual situation contact us today at (702) 587-5652 to schedule a quick no-cost quote! You can click the following link to view our 5-star Google Reviews. We can help get your LLC operating agreement customized so that the members intentions are definitively and correctly documented.