Operating Agreement

Create an Operating Agreement

Prepare an LLC operating agreement

• This is imperative if you are in a partnership.  You need to establish the rules and establish agreements on basic things such as ownership, management, loan creation, money spending, liability creation, and dissolvement of the business if that happens.

• The web has lots of operating agreement templates to choose from.

• e.g. https://eforms.com/operating-agreements 

Operating Agreement Basics

• Ownership percentages

• Types of members and their corresponding rights and responsibilities

• Contribution rules

• Voting & Meeting rules

• Allocation of profits and losses

• How the LLC will be managed

• Provisions for buy-outs & Selling rights

• Names of managing members

Note: Make sure you have a basic agreement in place even if your business partner is your best friend, your spouse, or someone you completely trust.  You need to have an agreement on how you run the business!