From the course: Running a Web Design Business: Defining Your Business Structure

Unlock the full course today

Join today to access over 22,600 courses taught by industry experts or purchase this course individually.

Creating an operating agreement

Creating an operating agreement

From the course: Running a Web Design Business: Defining Your Business Structure

Start my 1-month free trial

Creating an operating agreement

“

Next, in the LLC setup process, is establishing and operating your agreement. This agreement defines the LLC's financial and management structure, operating rules and regulations. Even though most states do not require operating agreements, it's always good to have one, especially if your LLC will have more than one member. The operating agreement will help a lot if there are conflicts between owners of the LLC. This agreement is also a good place to define what happens if one of the owners dies or retires, so the LLC isn't automatically dissolved. Other common things in the operating agreement include each member's percent of ownership, how profits and losses are distributed, each member's rights and responsibilities, the procedure for making decisions, how and by whom the LLC will be managed, how to handle changes in ownership, and what events affect a life or dissolution of the LLC.

Contents