subject: Essential Tips To Remember When Building A Llc Operating Agreement [print this page] Some wonder why an LLC operating agreementSome wonder why an LLC operating agreement. An LLC operating agreement is a contractual agreement that governs the operations of a limited liability company (LLC). It is important when creating LLC that measures are agreed upon and stipulations are put in place to govern members of the organization or business. This includes managerial and financial duties, rights, obligations and the percentage of profit and loss ownership of each member. LLC agreements clearly outline what is expected and is designed to protect everyone involved in the particular business venture. The governing organization in your state will be able to provide information regarding how to get a LLC.
How to Get an LLC
Forming your own LLC may not be as difficult as you may imagine. In four easy steps you can learn how to become an LLC. After choosing a name for you LLC that is compliant with the LLC regulations of your state, you can begin filing formal paperwork which may include publishing an intent to form LLC notice depending on your state. After filing your paperwork, you can start drafting an LLC operating agreement.
What You Should Know Before Building an LLC Operating Agreement
Even though there are guides concerning LLC agreements available at the state level, it is important that you draft an agreement that is carefully suited to your situation when you are maneuvering how to start a corporation or LLC. LLC agreements should be carefully drafted. This is so because not only does an LLC operating agreement provide your organization with ease of operation where the business is concerned, but it also ensures that the personal assets of persons involved are protected. Thus, should something go wrong and the business goes under, the personal assets of the owners do not become liable but are treated as separate from the debts and obligations of the LCC. It should be noted however that while the protection of personal assets part of the agreement stands in most cases, it is not absolute. There are situations where this clause within the LLC agreement is challenged in the US courts.
