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Drafting Operating Agreements

Operating Agreements: What You Need To Know

Are you ready to kick off a new business? At Kurzban Kurzban Tetzeli & Pratt, P.A., we help entrepreneurs establish Florida businesses, including providing information to help them decide which kind of business entity is the best choice to meet their goals. Many choose to set up limited liability companies, known as LLCs.

An LLC is a popular modern business entity that can be advantageous from a tax standpoint with the potential to limit the personal liability of members. Instead of partners or shareholders, owners are called members.

Once you have formed an LLC, a pressing decision is whether to draft an operating agreement, which can be important to the business.

What Is An Operating Agreement?

The agreement sets out the company’s business purpose, how it will conduct itself and internal rules for operations. Provisions relate to:

  • Member-to-member relationships
  • Member-to-LLC relationships
  • Manager duties and rights
  • A process for amending the agreement

There are a lot of important pieces to these agreements, and it’s best to have someone who knows what they are doing, considering the high level of detail in Florida law concerning operating agreements. Our lawyers can help your business establish an operating agreement and will provide advice and counsel about each potential topic, so you can make an informed decision whether to include it.

Do I Need An Operating Agreement?

Florida does not require an LLC to have an operating agreement, but it is usually a smart business move to have one. It acts as a guide so that all the members and managers in your company are aware of the operating rules. For example, what happens when a member dies or becomes disabled?

Two principles make it important to have experienced legal counsel that you trust onboard to help draft an operating agreement:

  • If the agreement is silent on an issue, Florida law may impose a default provision, which may not be the preferred approach for your business goals.
  • Florida law places many restrictions on what may be included in an operating agreement, requiring careful drafting.

This is why it is important to have a law firm you trust draft an operating agreement. We will work with you to make sure all your needs are met.

Contact Us Today To Get Started

Protecting your company and having clear guidelines are important. If you need help drafting an operating agreement for your LLC in the greater Miami area, contact one of our attorneys today for a free consultation. You can reach us at (786) 788-8557 or by filling out our contact form.

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