Is Your LLC’s ‘Operating Agreement’ Sufficiently Worded To Protect Your Personal Assets?

Once you’ve formed a limited liability company (LLC) by filing the Articles of Organization, what’s your next step? The most critical component of an LLC is the ‘Operating Agreement’.   Although an Operating Agreement is technically not required by State law, a detailed Operating Agreement is strongly recommended to protect your hard earned assets. Attorney Jeff Matsen has fine tuned his ‘manager managed’ and ‘member managed’ Operating Agreements throughout the years, and they can be tailor made to fit your circumstances.

The Operating Agreement may be prepared so that the LLC resembles a general partnership, a limited partnership, a corporation, or any other form its members choose. This operational flexibility makes the LLC an attractive business structure. Do not rely on standard Operating Agreements offered by typical LLC formation companies, since the wording in the Operating Agreement is critical to estate planning principles. In the event of creditors attempting to attach the LLC’s assets, protection lies within the Operating Agreement. A poorly drafted and worded Operating Agreement may cause catastrophic loss of the LLC’s assets.

• Whether the LLC will be ‘Member Managed’ or ‘Manager Managed’
• Members’ Rights
• Manager’s Rights
• Capital Contributions of Members
• Financial Records
• Allocation and Distribution of Profits or Losses
• Dissolution and Winding Down Issues
• Transfer of Membership Interests
• Other Critical Issues

If you are planning to form an LLC, or need a detailed and properly worded Operating Agreement, please contact us at (888) EZCORP4 (888-392-6774). We can help you with the process.