Small Business Reading Room

Wednesday, August 10, 2005

Creating an LLC Operating agreement

I just visited what is quickly becoming one of my favorite blogs- BizBangBuzz.
Attorney Anthony Cerminaro points the way to an article at FindLaw- Creating an LLC Operating Agreement.

Here's a preview of what you can expect to read there:
What to Include in Your Operating Agreement
There's a host of issues you must cover in your operating agreement, some of which will depend on your business's particular situation and needs. Most operating agreements include the following:

  • the members' percentage interests in the LLC

  • the members' rights and responsibilities

  • the members' voting power

  • how profits and losses will be allocated

  • how the LLC will be managed

  • rules for holding meetings and taking votes, and

  • "buy-sell" provisions, which establish a framework for what happens when a member wants to sell his (or her) interest, dies or becomes disabled.

While these items may seem fairly straightforward, each has important details.

Remember, there is nothing like the advice of a good attorney- but it doesn't mean that you can't be involved in writing your operating agreement or have an understanding what goes into the construction.


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