| It is extremely important that every limited liability | | | | Business |
| company ("LLC") have an LLC Operating Agreement. | | | | Many state LLC statutes, for example, have default |
| The LLC Operating Agreement is the core document | | | | rules that govern how certain business decisions |
| that is referred to when issues concerning the LLC | | | | should be made, such as how the LLC will be |
| need to be resolved. It reflects the agreement among | | | | managed, rules for holding meetings and taking votes, |
| the members with respect to the affairs and | | | | rules for the sale of the LLC, how profits and losses |
| management of the LLC, as well as governs the | | | | should be allocated, amending the Agreement, |
| relationship amongst the members of the LLC. By | | | | admitting a new member, and dissolving the LLC. |
| having an LLC Operating Agreement, the members will | | | | Defaulting to state law for important LLC decisions |
| be provided with a clear set of rules that all members | | | | could jeopardize your business. If you don't want the |
| have agreed upon greatly reducing the likelihood of | | | | state to tell you how to run your LLC, it's important that |
| disagreement between them in the future. A LLC | | | | you have a well drafted LLC Operating Agreement. |
| Agreement will also greatly reduce financial and | | | | By having an LLC Agreement, you can decide the |
| management misunderstandings, and make sure your | | | | rules that will govern your LLC's inner workings, rather |
| business is governed by your own rules -- not default | | | | than having to follow state default rules that may or |
| rules created by your state. | | | | may not be right for your LLC. |
| Don't Let the State Tell You How to Run Your | | | | |