When starting a business, one of the most important legal documents you will need is an LLC operating agreement. An operating agreement is a written agreement between the members of a limited liability company (LLC) that outlines the business’s operations, ownership structure, management structure, and conditions of membership.
Having an operating agreement in place can help protect your business by establishing clear rules and expectations for all members, reducing the risk of disputes and legal issues in the future. Here’s how you can get your hands on an LLC operating agreement:
1. Hire a Lawyer
One of the easiest ways to get an LLC operating agreement is to hire a lawyer who specializes in business law. A lawyer can draft a customized operating agreement that is tailored to your business needs and complies with the laws of your state. While this is a more expensive option, it can provide you with peace of mind knowing that everything is in order legally.
2. Use an Online Service
If you don’t want to hire a lawyer, there are several online services that can help you create an operating agreement. These services typically use a questionnaire to gather information about your business, and then generate a standard operating agreement for you to customize. However, it’s important to research these services carefully before using them to ensure they are reputable and provide a legally sound product.
3. DIY
If you have some legal knowledge and feel confident in your ability to draft an operating agreement yourself, you can create one from scratch. However, this option is only recommended for those with experience in business law, as creating a legally binding document without the proper knowledge could put your business at risk.
No matter which option you choose, it’s important to have an LLC operating agreement in place before starting your business. This document can provide clarity and structure for your business operations, protect your assets, and help you avoid legal issues in the future. If you’re unsure which option is best for you, consult with a legal professional to ensure you make the right choice for your business.