|
First and foremost, it should be noted that you don’t necessarily need to have an operating agreement as an llc. However, you will need one, and that’s the conundrum that most people end up hitting. Ok, the short answer to the question is a most emphatic no, but as you start to work under this business banner, you will soon realize that it’s going to be something that is absolutely necessary for your sanity, and in some states, the law. Before you get confused, consider the following explanation into the reasons why you need to consider this, as it will help you move forward. Not all states require a formal piece of paper that talks about how your business operates or who operates it. However, it’s still a good idea and it’s highly recommended by many experts. Assuming that you’re going to operate your company on your own, you could run things any way you want, however, acting like a sole proprietorship is not a good idea in the long term as it can end up leading to misunderstandings of a legal nature. To make sure that your LLC is operating correctly it becomes important to consider writing out the way you will govern over a company and the way you’ll work for and under the banner of legality. This kind of paperwork can seem mundane, but it will come in handy when you’re dealing with more than just yourself. If you plan on growing to a point where you are hiring workers and dealing with employees or even a great deal of independent contractors, you will need to put provisions into place that will help you operate properly and not just scatter your resources across several platforms. If you have more than one owner, then this paperwork becomes more crucial. While it’s not mandatory, it’s important to consider how the company will split profits, how management will work out, and whether or not an allocation of losses will be split or put on the shoulders of one person. Not only that, there should be an outline as to what each party has rights and responsibilities for within the LLC. Aside from that which is mentioned above, it’s important to look into amending the rights and practice sin case there is a disagreement or dissolution of the business as a whole. This all might seem confusing, but it’s important to understand that these things will be put into place to protect owners and workers all the same. If you don’t consider the many differences here, and how you will conduct business when it gets larger, it might be hard to change how the company is run. If you’re a sole proprietor, then the rules are different, and you can do a great deal of other things that you might not be able to get away with when forming a legitimate LLC. Once again, the answer to the question is that you don’t necessarily need to have an operating agreement by law, but you should have one just because, it will save you a great deal of problems that will undoubtedly arise in the future. Are you looking for information on forming a legitimate LLC? Visit http://www.ezonlinefiling.com/form-an-llc-2.php to learn how!
Related Articles -
forming, a, legitimate, LLC,
|
