Group Limited Liability Company Without A Written Operating Agreement
Description
How to fill out Services Agreement Between WPI Group, Inc., Warner Power LLC And Warner Power Conversion LLC?
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FAQ
An operating agreement (bylaws) is an internal document that defines how the business owners professionally relate to each other, whereas the articles of incorporation (certificate of formation) is a public document that legally establishes a business as a corporation.
Articles of Organization are also called a Certificate of Formation in some states. It is a document filed with the appropriate state when registering a limited liability company (LLC). An Operating Agreement is the document LLC members look to when they need to resolve issues or disputes within the company.
An operating agreement is a key business document that shows your business operates like a legit company. Without the operating agreement, your state might not acknowledge you as an LLC, and which means someone could sue to go after you without there being any shield to protect your personal assets.
A better name for an operating agreement might be a membership agreement. This agreement is similar in form to a partnership agreement for a business partnership.
Most states do not require LLCs to have this document, so many LLCs choose not to draft one. While it may not be a requirement to have an operating agreement, it's actually in the best interest of an LLC to draft one. And by drafting it, I'm referring to creating a written operating agreement.