This service includes the drafting of an operating agreement for an entity we did not form, which are the rules by which the association is governed, such as what actions require a vote, what the manager can do unilaterally, etc. This service includes unlimited revisions that do not change the nature of the document.
Frequently Asked Questions
The next value provided by the attorney is drafting an operating agreement or bylaws. If there is only one owner of the business, this is not that important, and you can just use a form, such as this one on our website. If there are multiple owners; however, it is important to draft a detailed operating agreement as it sets forth what each owner can do, what approvals are required, etc. The drafting of this operating agreement is included in our entity formation services.
Finally, forming an entity is only half the battle. The other half is making sure that you understand what you need to do to not invalidate the protections of the entity. If you utilize our firm for entity formation, we will go over these steps with you during a phone call or video conference so that you can have confidence that you are doing what you need to do to protect your assets.
If there is more than one owner, then I would ask if you would play a sport without a rule book. The operating agreement (LLC) or bylaws (corporation) are the rules for the business. These rules when a person can spend or withdraw the company?s money or what is required before binding the company to a contract. They also help to determine when an owner can leave and what is owed to that person (if anything). It is important that the rules of the entity are clear to help protect all of the owners.
Finally, please note that having a well drafted operating agreement or bylaws may help to keep the marriage going strong. By having rules that are established up front, there is less room for disputes down the road. As a result, planning for the ?what ifs? may help you avoid those undesirable circumstances entirely.