<span id="hs_cos_wrapper_name" class="hs_cos_wrapper hs_cos_wrapper_meta_field hs_cos_wrapper_type_text" style="" data-hs-cos-general-type="meta_field" data-hs-cos-type="text" >Operating Agreements for LLCs</span>

Operating Agreements for LLCs

The Operating Agreement - the handbook for the company, the manual for navigation, the least used document in possibly all of corporate history.
If you have a single member LLC, the Operating Agreement is very useful pretty much just for the purpose of identifying leadership if you pass away while owning the LLC.  It is basically a supplement to your estate plan.
For multi-member LLCs, this is a critical document.  You need to plan for a break-up.  Planning while you are getting along with your owners is much easier than planning a break-up while you're breaking up.
The Operating Agreement identifies buy-out procedures, valuation processes, leadership roles and responsibilities, and the other core elements of the LLC.  In your best case scenario is just gets looked at a couple times per year for a refresher.  In a worst case scenario it lays out the required methods for eliminating an owner or kicking a member for failing to abide by the terms.
Check your shelves or hard drive.  If you don't have this document, I urge you to get it in place soon!

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