LLC Operating Agreement

Use a LLC Operating Agreement to define your company’s operating terms and protect your legal rights and responsibilities

Overview on the LLC Operating Agreement

Think of an LLC operating agreement for a limited liability company as a prenuptial agreement for your business. It provides owners a detailed framework for various business and functional issues that may arise. An operating agreement can be handy in defining the roles and responsibilities of its members, allocating ownership percentages, explaining management procedures, establishing annual meeting guidelines, and setting forth details regarding change in ownership or winding up of the LLC. By talking with your members and creating an operating agreement with an attorney, you’ll avoid costly and time-consuming disputes as your business grows. 

How legal advice can help

Hiring a good lawyer to create your LLC operating agreement will provide vital assistance in
almost every aspect of your business. 
Ensure compliance
Some states require LLCs to maintain an operating agreement. Other states have even more rules for LLCs. Either way, an operating agreement facilitates compliance by jam-packing all of those rules, and your company’s adherence to them, into a single agreement.
Save money long term
A well-written LLC operating agreement should guide your company in the right direction. As such, the price to pay to have an attorney draft you an agreement can end up being a fraction of what can happen by not implementing an operating agreement.
You get much more 
Because an LLC operating agreement delves into the heart of your operations, hiring an attorney to draft your operating agreement will usually lead to helpful hints on other matters.
Prevent future issues
Receive proactive legal risk management that will help you avoid problems before they arise by tapping into senior attorneys with considerable business experience.

Business Structures Compared

The type of business entity you select for your company is one of the earliest “big” decisions you’re going to make. From the many forms of business structures available, most owners choose to operate as a Limited Liability Company (LLC), S Corporation (S-Corp) or C Corporation (C-Corp). Each type of entity has advantages and disadvantages depending on your company.
Features C-Corporation LLC S-Corporation

Limited liability for owners

Yes Yes Yes

Unlimited number of shareholders / members

Yes Yes Limited to 100

Income of entity taxed separately from owners / shareholders

Yes No No

Income of entity not taxed - passes through to individual owners / shareholders

No Yes Yes

Foreign ownership is allowed

Yes Yes No

Entity can be owned by or own other entities

Yes Yes No

More than one class of stock / ownership interest is permissible

Yes Yes No

Shareholders/members can deduct business losses on individual tax returns

No Yes Yes

We offer everything you'll need
in one package.

Consultation with Experienced Attorney
Custom-Drafted LLC Operating Agreement
Review & Ask Questions

Average Costs

The cost of an LLC operating agreement can vary based on a number of different things.
To get an exact price for your business click here.

$300 - $1500

*figure show is an average. costs may vary.

Common Questions

The state governing my LLC does not require an operating agreement, should I still have one drafted?
Absolutely. An operating agreement can be extremely effective in helping you run your business. Aside from it serving as a rulebook for your company, having an operating agreement looks good in court. By having an operating agreement, you are signaling to the court that your LLC is indeed separate and apart from yourself. Also, without an operating agreement, an LLC must follow the default rules in its state for things like the allocation of profits and losses.   
Should I purchase an operating agreement on a template provider website?
An operating agreement should be tailored to your LLC. The agreements found on these boilerplate websites are standardized and may leave out important terms specific to your LLC. An operating agreement should serve as your LLC’s playbook so it’s imperative for it to be custom drafted to address your company’s uniqueness. 
What are some terms to include in an operating agreement?
It’s important to include the LLC’s purpose, the roles of its members (titles and day-to-day responsibilities), the person in charge of the LLC’s accounting, ownership interests, profit-sharing breakdown between the owners, voting rights of members, rules for meetings and voting, and rules for member withdrawal and dissolution. 
What’s limited liability protection?
It’s the biggest reason why people choose to incorporate their businesses. It provides owners protection from their personal assets against creditors’ claims. As long as the owners truly treat their business as a separate entity, they retain such protection.
Can members change the terms in an operating agreement?
Yes, an operating agreement can be amended if every member agrees and signs the updated operating agreement.
-Can LawTrades help my LLC with any other formalities?
Our group of attorneys have experience working with companies across the country. Need help with publication requirements? Opening a business account? Obtaining licenses? Conducting an annual meeting of your members? We can help you with just about any task. 

HOW Getting a llc operating agreement WORKS

Describe need.
We’ll have a brief but detailed discussion to understand your needs and provide you with an upfront price quote.
Meet attorney.
To match you with the best LLC operating agreement lawyer, we tailor our search to the specific skills you’re looking for. It's simple and easy.
Review & accept.
We hold your funds and only release it to the attorney when you’re 100% satisfied with the work product.

LawTrades Business Attorneys

Discover our invite-only network of senior attorneys. Great companies
depend on our expertise for critical LLC operating agreements. 
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New York, NY
(39 Reviews)

"From my initial contact with Jon and with each successive correspondence we've had, Jon has been detailed, patient, and easy to talk to. Most importantly, he understood the startup space and knew right away what needed to be taken care of."

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San Francisco, CA
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Boca Raton, FL
(23 Reviews)

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Los Angeles, CA
(12 Reviews)

"Adam is excellent at what he does, has fair pricing, and is as excited to work with our company as we are to build it. LawTrades also has excellent customer support, and I've enjoyed using the interface as well to track invoices."

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