WHY EVERY LLC NEEDS AN OPERATING AGREEMENT?
The LLC Operating Agreement is the core document that is referred to when issues concerning the LLC need to be resolved. The LLC Operating Agreement is the most important document for your LLC. By having an LLC Operating Agreement, the members will be provided with a clear set of rules that all members have agreed upon, greatly reducing the likelihood of disagreement between members in the future. It is extremely important that you create an Operating Agreement for your LLC entity. Without the formality of an agreement, the basic operation of the LLC would be governed by state law, which may not be advantageous to the LLC, it members, or the business it conducts. Each state LLC statute contains basic operating rules for LLCs, some of which will govern your business unless your Operating Agreement states otherwise (these are called “default rules.”). Don’t let the State tell you how to run your LLC Many state LLC statutes, for example, have default rules that govern how certain business
