![]() Since the LLC Operating Agreement is a contract, it must be agreed to by all participating parties. The ability to draft your own rules and guidelines through the LLC Operating Agreement is one of the most significant advantages of a Delaware LLC, causing over 70% of entrepreneurs to create an LLC over any other business entity. This means the LLC Agreement will allow you to create an entity as well as define the relationship among its members as you see fit for your unique situation. ![]() The Delaware legal premise known as freedom of contract gives the organizers of the LLC, who set the LLC's terms and oversee the drafting of the Operating Agreement (among other powers and duties), enormous flexibility in defining the rights and responsibilities of the LLC members. Delaware is among the states where operating agreements are not mandatory. While the operating agreement is not mandatory in all states, it is recommended to draft them to set the guidelines for the LLC will run. Do I Need an Operating Agreement for My LLC? It is the main governing document of the LLC, above all others. A Delaware LLC Operating Agreement sets forth the terms governing the limited liability company, its interests, activities, management and provisions governing the rights and obligations of its members.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |