Here is a friendly reminder for all LLC Business owners, members, and managers.
When was the last time you updated your Operating Agreement? Do you even have an Operating Agreement?
First, if you are running a business and have no formal agreements between the members, managers, or employees of the business, it may be time for you to reach out to Goosmann Law Firm and let us help you set up and structure your business to fit all your personal and company needs. Setting up your business as an LLC is simple, relatively inexpensive, and provides vital protections for you as a business owner.
Second, if you are operating as a LLC, and have taken the correct step in drafting and signing an Operating Agreement, it may be time to review the Operating Agreement. As a business owner, member, or manager, you will want to make sure all the terms sections of the Operating Agreement are still in line with your current goals an values.
The Operating Agreement is one of the most, if not the most, important documents concerning your business. The Operating Agreement controls nearly all functions concerning the formalities and structure of your business. The general purpose of an LLC is to provide as much latitude for the contracting business owners as possible. This provides an excellent means for business owners to craft their own unique business arrangement. However, due to this contracting freedom, there are minimal protections for those held liable to the Operating Agreement for provisions they may not have taken seriously at the time of signing, non-formal agreements between members and managers of the LLC, or simply ignored.
If it has been a while since the last time you reviewed your Operating Agreement, be sure to give it a read, and ensure you will not be harmed in the event of a sour business event. If you have any concerns about your Operating Agreement, or would like help in drafting your first Operating Agreement, give us a call at Goosmann Law Firm.We are here to help you will the process of building and protecting your assets and your company. Feel free to stop by one of our three locations in Sioux City, Iowa; Sioux Falls, South Dakota; or Omaha, Nebraska.