Frequently Asked Questions

What are the essential details that must be included in an LLC Operating Agreement?

An LLC Operating Agreement is a crucial document that ensures the smooth running of a company, especially in multi-member LLCs where disputes can arise. It allows members to set out operating rules that best serve their interests. Although not legally required, it is highly recommended to have one to avoid referring to the default state rules in case of disagreements. The essential details that must be included in an LLC Operating Agreement are the LLC’s name and address, management type, certificate of formation, registered agent and office information, ownership percentage, term of duration, member’s voting rights, procedures in case a member dies, business purpose, initial contribution, powers of members and/or manager, management fees, distribution of losses and profits, company operation, addition of new members, record maintenance, handling of finances and accounting, resolution of member disputes, schedule of regular meetings, contract signing authority, and policies regarding a member leaving or competing against the LLC.