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An LLC operating agreement is a contract between you as the owner of your LImited Liability Company and the business itself. If you do not have an operating agreement in place, your LLC will be governed by your state LLC statute. With an operating agreement for your LLC, you will have more control over how your LLC is managed, and what you can and can't do as the owner of your LLC.
Some of the issues that your operating agreement will handle include:
- Who owns and manages the LLC;
- How the LLC is managed;
- How the LLC is taxed;
- How and when profits of the LLC will be distributed;
- Where the LLC will be located;
- What you will do if there is a dispute between members;
While an LLC Operating Agreement is not legally required, and you certainly do not need to file your Operating Agreement with the State, it is a vitally important legal document that will prevent a piercing of the corporate veil, and may also be required on a moment's notice for a variety of financial transactions.
Note: this operating agreement can be amended for multi-member LLCs, but is intended for single-member LLCs
From the blog
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Agreement vs Contract - Key Differences and How to Make Your Contracts Legally Enforceable
What are the main differences between agreements and contracts? How do you know if you have a valid contract? Does your contract need to be in writing? In this post we explore these questions and more regarding the legality and necessity of enforceable contracts.
How and When to Apply for an EIN Online
This post will demystify many of the questions surrounding EIN numbers, such as what they are, who needs them, and when to apply for them.
I will also take some time to review some of the common mistakes people make when applying for an EIN number and what to do if you are an international applicant.
8 of the Best Contracts for Creatives [2023]
If you are just getting started with your online business or blog, you need to have a number of rock solid contracts for your small business.
In this post I will share with you 8 of the top contracts for creatives that you need for your website, as well as some of the top clauses that you must include in those contracts to make sure your legal rights are protected.
Agreement vs Contract - Key Differences and How to Make Your Contracts Legally Enforceable
What are the main differences between agreements and contracts? How do you know if you have a valid contract? Does your contract need to be in writing? In this post we explore these questions and more regarding the legality and necessity of enforceable contracts.
How and When to Apply for an EIN Online
This post will demystify many of the questions surrounding EIN numbers, such as what they are, who needs them, and when to apply for them.
I will also take some time to review some of the common mistakes people make when applying for an EIN number and what to do if you are an international applicant.
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