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An LLC operating agreement enables a small business owner to establish each of a company's co-owners' percentage of ownership within a firm as well as his or her share of profits and that person's rights and responsibilities. It also allows them to outline what would happen if a partner opts to leave the company.
While an LLC operating agreement is not required in every state, it is highly recommended by experts, even for those companies that are run by just one person. In such cases, it would allow the single business owner to ensure that he or she is able to run and govern a business by his or her own rules, as opposed by the default rules of the state in which a company is incorporated.
"The main reason to make an operating agreement is as simple as it is important: It helps to ensure that courts will respect your limited personal liability," the website Bplans explains.
"This is particularly key in a one-person LLC, where, without the formality of an agreement, the LLC will look a lot like a sole proprietorship. Just the fact that you have a formal written operating agreement will lend credibility to your LLC’s separate existence," it added.
This article is brought to you by Vcorp Services – offering registered agent services to businesses nationwide. Providing a physical address to accept service of process on behalf of your corporation, Vcorp’s registered agents can handle all of your company’s statutory representation needs.
While an LLC operating agreement is not required in every state, it is highly recommended by experts, even for those companies that are run by just one person. In such cases, it would allow the single business owner to ensure that he or she is able to run and govern a business by his or her own rules, as opposed by the default rules of the state in which a company is incorporated.
"The main reason to make an operating agreement is as simple as it is important: It helps to ensure that courts will respect your limited personal liability," the website Bplans explains.
"This is particularly key in a one-person LLC, where, without the formality of an agreement, the LLC will look a lot like a sole proprietorship. Just the fact that you have a formal written operating agreement will lend credibility to your LLC’s separate existence," it added.
This article is brought to you by Vcorp Services – offering registered agent services to businesses nationwide. Providing a physical address to accept service of process on behalf of your corporation, Vcorp’s registered agents can handle all of your company’s statutory representation needs.
About Vcorp Services LLC
Vcorp Services assists in the creation of new businesses and helps maintain existing businesses in
all 50 states. Quick, accurate and at the lowest rates, Vcorp's knowledgeable and experienced staff
has helped form thousands of new businesses including: LLCs, S-Corporations, C-Corporations,
Partnerships, Non-Profits and Professional Corporations. Vcorp works with entrepreneurs, legal and
tax professionals, as well as real estate experts to set up and maintain businesses across the
country. Vcorp also specializes in helping small businesses to get started, grow and remain in
compliance with federal and state regulations.