What is an Operating Agreement?
An operating agreement in an LLC is equivalent to a partnership agreement in a partnership. It covers such issues as capital contributions of members, obligations to contribute additional capital in the future, admission of new members, expulsion of members, and transfers of membership interests There are many options for handling each of these issues, depending upon the type of business involved, the composition of the members and their particular desires and objectives. Because of their complexity, it is advisable to consult an attorney to thoroughly review these issues and prepare a customized agreement. For more information on operating agreements, click here.
The Operating Agreement is a private agreement between the owner(s) of the LLC. It specifies how the LLC is to be operated. We have developed some of the most powerful Sample Operating Agreements that will come with your LLC order. This document is only disclosed to those that you wish to disclose it to.
The operating agreement is akin to a partnership agreement for a General Partnership or Limited Liability Partnership (LLP). It is an internal contract amongst the members/owners of the LLC, and it lays out such things as ownership interest, member responsibilities, accounting methods, adding or removing members, terms for concluding the LLC, etc. It is generally not required by a given state for forming an LLC, although it is certainly recommended. When dealing with private companies for financing issues (loans, mortgages, etc.) it may be required by that company. I INC YOU, Inc. will include a completed operating agreement with your the LLC / Corporate Kit.
An Operating Agreement is the primary contract among the members of a LLC that governs the membership, management, operation and distribution of any income of the company. It is similar to a corporation’s Bylaws. An Operating Agreement should be in place directly after the LLC becomes active. While an operating agreement is not required to form a Colorado LLC and it not a strict legal requirement in Colordado, most every LLC has one and it is strongly recommended that every Colorado LLC adopt one to provide further support for limited liability protection.
