UNDERSTANDING OPERATING AGREEMENTS
Explained by an Experienced Los Angeles Business Attorney
A Limited Liability Company, LLC, should be sure to include an operating agreement when forming the LLC. In addition to the Articles of Organization, owners of a Limited Liability Company, LLC, should reduce their agreement regarding the LLC to writing. Operating agreements are specifically addressed in the California Revised Uniform Limited Liability Company Act.
Even a single member LLC should have a written operating agreement to show that the Limited Liability Company, LLC, is separate and distinct from the owner or person who owns the LLC. Operating agreements must be drafted with care, detail, and knowledge of Limited Liability Companies, LLC.
The Law Office of Eric J. Proos, P.C., is here to help you and your Limited Liability Company, LLC with its operating agreement.
What is Included in an Operating Agreement?
Operating agreements for your LLC should include some basic information such as identification of the owners by name, the owners’ capital contribution, name of the LLC, and address of the business. Additionally, according to the California Revised Uniform Limited Liability Company Act, an operating governs the following:
Relations among the members as members and between the members and the LLC;
The rights and duties of anyone identified as a manager;
The activities of the LLC and the conduct of those activities; and
How to amend the operating agreement.
Most people only discuss what should be included in your Limited Liability Company, LLC, operating agreement. In addition to what should be included in an operating agreement, the California Revised Uniform Limited Liability Company Act also states what should not be included in your Limited Liability Company, LLC, operating agreement. Your LLC operating agreement should not do the following:
Vary a limited liability company’s capacity under Section 17701.05 to sue and be sued in its own name.
Vary the law applicable under Section 17701.06.
Vary the power of the court under Section 17702.04.
The Law Office of Eric J. Proos, P. C. has helped countless Limited Liability Companies, LLC, to properly form including preparing the Articles of Organization and drafting its operating agreement.
Do not start your LLC without a properly drafted operating agreement or with a boilerplate LLC operating agreement that was found online.
Call the Law Office of Eric J. Proos, P.C. today to schedule your consultation to discuss your LLC and its operating agreement, or need for operating agreement.