Should you get an Operating Agreement?

What is an Operating Agreement?  An Operating Agreement is the contract between the owners of a Limited Liability Company that controls how the company conducts business.

Do you REALLY need an Operating Agreement?   Yes you do!

In a limited liability company (LLC), the members of the LLC are the owners of the business.  If you have more than one member or owner, you absolutely need to have an Operating Agreement for your business.   No matter what size your business may be or how many members it may have, everyone, including the business is best served by having an Operating Agreement for the company.

An Operating Agreement sets out how the members would like to treat their ownership interest in the event of certain occurrences to the company or the members themselves.  These occurrences may include disability, divorce, death, the sale of the company, or the dissolution of the company.  An experienced Atlanta lawyer can draft an operating agreement that will help the business owners to develop a plan to handle circumstances as these and many more.

An operating agreement may contain a wide variety of provisions that set out the management of the company and the specific situations that require agreement of the owners.  The operating agreement can set out each manager’s and member’s rights and responsibilities to the company as well as to each other.

One of the most important goals of an operating agreement is to set out a system to resolve disputes and problems as they arise in the company.  The avoidance of deadlock through a system of dispute resolution set out in the operating agreement can help a company get through difficult times in the business.

The Collins Firm can provide an Atlanta, Georgia based attorney who will work with business owners to determine the best structure and provisions that will meet the needs of the company and the owners.

Atlanta business law attorney Matthew P. Collins, Esq., has almost 20 years of experience assisting businesses ranging from large, well-established companies to small start-up operations.  Mr. Collins has the skill, experience and knowledge to help you move your business grow and succeed.  For a complimentary consultation, call The Collins Firm at 404-214-6070 or email us today.

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