| After I create my LLC, what do I do now? Many | | | | law acknowledges that there is no one size fits all |
| create this special kind of legal entity for their | | | | solution to how a limited liability company can be |
| business. But once formed, they have no idea | | | | operated. Accordingly, the law generally allows for |
| what to do next when it comes to governance | | | | every specific business to determine and approve |
| and operations. The Limited Liability Company | | | | its own set of rules depending on what the |
| Agreement is essential for many reasons but one | | | | Members think are most appropriate. |
| practical reason is it gives the owners and | | | | Just the exercise of preparing and formalizing a |
| operators a user manual for how to operate. | | | | Limited Liability Company Agreement is beneficial |
| The LLC Agreement is a written agreement | | | | to an LLC and its Members as it forces each |
| signed by the business entity and its Members. | | | | owner to determine, learn and follow the rules. |
| The agreement first evidences the ownership and | | | | This alone makes it much more smooth sailing for |
| sets forth what each Member's rights and | | | | the venture. |
| responsibilities are. However, the written | | | | The best way to have and adopt the right |
| agreement also serves another very important | | | | written operating Agreement is to retain the |
| purpose. A well written Agreement should include | | | | services of a competent business attorney. |
| a set of rules for how the business will be run. | | | | However, many business owners do not have the |
| Every member, manager or officer should have a | | | | resources to hire an attorney. In such cases, insist |
| good practical understanding of how the business | | | | on starting out with a professional form |
| will be managed. Matters like appointing officers | | | | agreement that addresses all the major issues. |
| and giving them authority or obtaining the required | | | | The only way to know what those issues are is |
| votes or approvals from Members for actions are | | | | to insist on obtaining the form from a reputable |
| typically addressed in the Limited Liability | | | | company that understands limited liability |
| Company Agreement. One great thing is that the | | | | companies. |