LLC Operating Agreement Filing
An LLC Operating Agreement is not required for state filing purposes, but it is a great way to cover all of your bases and have a clear written out document of what specific members are in charge of and how gains and losses are split up among said members. While an operating agreement can also be oral, it’s a good idea to have a formal agreement to avoid any misunderstandings about who is in charge of what, distribution of debts and profits and to protect your limited liability status.
An operating agreement is a document that outlines the manner in which a company is to do business and who will manage the company. It is a framework for the business, and spells out the rules and regulations to which the company must adhere.
Forming an operating agreement is required by many states, however, no state requires that it be filed with the state. The laws of an LLC operating agreement can vary greatly from state to state, with some requiring an operating agreement for companies with a single member, while others only requiring one if there is more than one member.
Although states don’t require an operating agreement to be on file with the state, some still require it to be on file internally. An operating agreement can be oral, however, it may be a better idea to put it in writing in order to avoid any ambiguity or misunderstandings.
What information should an operating agreement typically contain?
- Allocation of profits and losses
- Fiduciary duties of members and officers
- Member voting rights
- How members are to be added or removed
- How officers are elected and what their duties are
- Financial provisions and provisions for taxes, capital and dissolution
- Debt responsibility of members
- Annual meeting locations, times, and meeting rules
- Information about ownership and management
Who needs to see an operating agreement?
An operating agreement is not only beneficial, but also necessary for some business activities to be carried out. For instance, lenders and banks will often request a copy of the operating agreement when your company is trying to obtain financing or open a business checking account.
Often, potential investors and partners will want to look over various business documents, including your operating agreement, and attorneys and accountants may request an operating agreement as well.
The Importance of Operating Agreements
Operating agreements are important because they ensure that the company operates according to the vision of the LLC’s members and managers, and the agreement helps protect the integrity of the business.
Why choose DoMyLLC?
Our knowledgeable and qualified representatives provide personalized care you can trust. We keep up-to-date on the latest compliance rules and business trends, and we ensure your business paperwork is properly completed and filed.
We offer customized support tailored to your needs:
- Competitive pricing and a price-match guarantee
- 100% satisfaction guarantee
- Live customer support online or by phone
Hassle Free Process
Creating compliant business documentation can be time consuming and frustrating, especially when forming a new business. However, the experts at DoMyLLC will take information you provide and complete a quality, compliant operating agreement based on that information.
We use an easy, two-step process in which you simply place your order, and then receive both email and hard copies of your custom-designed operating agreement – no hassle involved!
Contact DoMyLLC for your customized operating agreement by choosing the “Order Now” button, or call one of our expert representatives at 888-366-9552 for more information.