| It is extremely important that every limited liability | | | | closely resemble a sole proprietorship, which does not |
| company ("LLC") have an LLC Operating Agreement. | | | | limit your personal liability for business debts of the LLC. |
| The Agreement is the core document that is referred | | | | Without an LLC Agreement, the basic operation of the |
| to when issues concerning the LLC need to be | | | | LLC would then be governed by state law, which may |
| resolved. The LLC Operating Agreement is the most | | | | not be advantageous to the LLC, it members, or the |
| important document for your LLC and can save you a | | | | business it conducts. |
| lot of time, money, and problems. | | | | The majority of state LLC statutes, for example, have |
| Even though the LLC Agreement is not required to be | | | | default rules that govern how certain important |
| filed with any state agency, it is unwise to operate an | | | | business decisions should be made, such as admitting |
| LLC without an LLC Operating Agreement, even if | | | | new members and dissolving the LLC. Defaulting to |
| you're the sole owner of your LLC. | | | | state law for important LLC decisions could be a great |
| It is extremely important that you create an Operating | | | | danger to your business. If you do not want the state |
| Agreement to separate yourself as an individual from | | | | to tell you how to run your business, it is extremely |
| your LLC, even if you are the sole owner of your LLC. | | | | crucial that you have a well drafted LLC Agreement. |
| Without the formality of an Agreement, the LLC can | | | | |