'operating agreement' and more attorney fees
What is the purpose of an operating agreement?
An LLC Operating Agreement is the document wherein a Limited Liability Company memorializes its rules and structures. It is perhaps one of the most important documents an LLC creates. The purpose of the document is to govern the internal operations of the business in a way that suits the specific needs of the business owners.
Do you need to file an operating agreement for an LLC?
All LLCs must file an Article of Organization, a legal document incorporating the business in a specific state, however, no state require that the operating agreements be filed.
What are the advantages of an LLC?
Protected assets. LLCs provide limited liability protection to their owners (members), who are typically not personally responsible for the business debts and liabilities of the LLC. Creditors can’t pursue the personal assets of the owners to pay business debts.
Is an operating agreement legally binding?
Once the document is signed by the members of the LLC, it acts as an official contract binding them to its terms. Operating agreements are legally significant.
How much does it cost to draft an operating agreement?
When you hire a lawyer, drafting an operating agreement typically cost anywhere from $350-$1000 for a single-member operating agreement and from $750-$5000 for a multi-member operating agreement.