How Do You Draft An Operating Agreement For A Limited Liability Company?
An operating agreement is a statement about the limited liability company (LLC) and the rights and responsibilities of its members. Although an operating agreement is not required by a state’s limited liability company act, it is an integral part of a partnership, comparable with corporate by-laws. An operating agreement is sometimes used in court cases as proof that the limited liability company is separate from the owner’s personal assets. Follow these steps to draft your own. Know how you want the limited liability company organized. You will need detailed information in the draft about the day-to-day management and organization of the LLC, as well as how you will share ownership. Discuss with other company members about how to manage the limited liability company. Allow plenty of time for this process, since you may encounter prolonged negotiations. Refer to the FindLaw Web site for tips and information about what to put in an operating agreement draft (see the Resources section be
