In a previous blog post we briefly talked about operating agreements. This topic is important enough to merit further examination. We’ll specifically look at what you need to include in an operating agreement for an LLC.
The Purpose of an Operating Agreement
Think of an operating agreement as the founding document that spells out the essentials of your business. Everything should be outlined including the management structure, membership interest, capital contributions and the financial allocations and distributions. More isn’t always better, but in this case being as detailed as possible will help you in the long run.