Five reasons LLCs with two or more members need an operating agreement
- Decide how you want to operate your business.
- Determine whether members can be required to chip in cash.
- Identify a process in case a member wants out.
- Define how the LLC could force a member out.
- Address the three Ds in advance—what if a member becomes disabled, dies, or divorces.
A personalized operating agreement is the best way to take advantage of all the flexibility LLCs offer. We’d love to talk about how this could benefit your business (and the risks if you don’t). Book an exploratory call to learn more.
Stephanie, owner of Melnick & Melnick, S.C. and self-described law nerd has been practicing law for over 25 years. Stephanie loves taking a deep dive into clients’ businesses to learn what makes them tick. She also relishes a well-written (short and simple) contract and is pleased to draft and negotiate all kinds, including leases, operating agreements, and terms of service.more posts by Stephanie →