Online Incorporation MaxBlog

Once you easily form a LLC online with MaxFilings.com, you need to develop a formal written operating agreement between each of the partners in the company. Even if you’re a one man show, an operating agreement helps codify your limited liability.

But especially in multi-partner firms, the operating agreement can help reduce or eliminate future misunderstandings and disputes by pre-addressing management and money issues.

Corporations have specific rules from the state of incorporation – limited liability companies on the other hand have much more flexibility in their management, etc. This is why an operating agreement is important, even if your state doesn’t require you have one.

So what should I include in my LLC operating agreement? Some of the issues an operating agreement should address include:

• Ownership percentages
• Management
• Voting
• Allocation of profits and losses
• Distributions
• Rights and responsibilities of LLC members
• Ownership changes
• Amendments and dissolution

These are just a few of the general things your LLC operating agreement needs to address. We invite you to read the article LLC Operating Agreement – What Should Be Included in MaxFilings’ online incorporation knowledge center to learn more.

This entry was posted on Friday, October 30th, 2009 at 10:51 am and is filed under Forming an LLC, Limited Liability Companies. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.