LLC Operating Agreements

An operating agreement is the governing document for the control and overall operation of a limited liability company (LLC). Similar to the bylaws of a corporation, an operating agreement sets forth the who, what, when and where that are essential to effective business operations. Most importantly, the operating agreement serves as the basis for the resolution of disputes among the LLC's "members." Although not usually required by state law, an operating agreement allows an LLC and its "members" to forego the default provisions of state statutes. In other words, if no operating agreement is present, then state LLC statutes provide for, among other things, the manner in which an LLC will be controlled, how profits will be distributed, and how the LLC may be dissolved. Schwaninger & Associates understands that it is far better for an LLC and its "members," not state statutes, to determine and control the intricacies of the LLC, and we have experience in writing operating agreements to meet the needs of our clients in a variety of businesses.