An operating agreement is a contract between two parties (e.g., a company and its members). This document outlines the rights and obligations of each party under certain circumstances, which means it carries a lot of weight. An operating agreement can include provisions such as restrictions on the transfer of ownership interest, the appointment of a managing member, and withdrawal or resignation of a member. This agreement can be complex and confusing, so having a quality attorney on your side to help you draft your operating agreement can be a big part of running a successful business.
A Few Reasons Why You Need an Attorney to Draft Your Operating Agreement
The Lawyer Will Help You Avoid Common Mistakes
An experienced lawyer will know what mistakes other people have made in drafting operating agreements. This knowledge could save you from making costly mistakes that even shut down your business.
A Quality Attorney Can Make Sure That Your Operating Agreement is Legal
The most important part of any contract or legal document is compliance with the laws surrounding it. Having an experienced attorney can help ensure that your operating agreement is legal. For example, if you want to limit the ability of one member to sell, that provision needs to be actually written into the contract.
A Quality Attorney Can Save Time
If you hire an inexperienced lawyer, your business entity may be lacking in the detail necessary for full asset protection and optimal tax outcomes. By hiring a more experienced legal professional, you can avoid wasting time now and facing losses in the future. Instead, you can feel confident and enjoy peace of mind.
A Quality Attorney Can Help Protect Your Personal Assets
An operating agreement includes language that keeps liability away from the member or members’ personal assets and transfers liability to the LLC. This protects the member/members’ personal assets, should the business get sued. Without this protection, the LLC’s members could be putting their personal property and assets at risk. Hiring a skilled attorney to draft your LLC’s operating agreement is a wise choice to fortify asset protection.
A Quality Attorney Can Help Clarify Agreements Among Members
Despite best intentions and verbal agreements, things don’t always go as planned. Having an experienced attorney draft the operating agreement for your partnership LLC is essential to avoid misunderstandings and miscommunications, especially in the event of a conflict. Specifying agreements, operational conditions, and other plans in writing provides a clear document for members to refer back to, should any questions, doubts, or disagreements arise. This can help all members gain a sense of clarity and security in the formation of the partnership and help alleviate stress and confusion along the way. When you hire a reputable attorney, you can rest assured that he/she will have your best interests in mind and will have the foresight to predict issues that may affect your company’s assets. Safeguarding your assets is essential to optimal outcomes for your business’s long-term success and profitability.
Trust Fusion Legal & Tax for Your Business Entity Formation Needs
Regulatory hurdles can be overwhelming for any business owner. At Fusion Legal & Tax, we’ll help simplify any processes associated with your company’s business entity formation and answer any questions that may arise around federal and/or state compliance. We’re here to help you with everything related to thoroughly and mindfully registering your business so you can rest easy knowing everything has been completed correctly.
To get the most from your new or existing company, it needs to be structured properly. Working with an experienced attorney at Fusion Legal & Tax will ensure that you are selecting the correct structure for your business and are your operational agreement are drafted accurately. Whether you’re a solopreneur, entrepreneur, or real estate investor, we help our clients create small businesses by listening carefully to their unique needs, and then we customize solutions tailored to fit those needs.
Fusion Is Here For You
Schedule an appointment and let us help you with your business entity formation needs today.