An LLC operating agreement is a contract between the members of an LLC that governs the business affairs of the company. Common clauses of an LLC operating agreement include the percentage of ownership of each member, vesting of ownership, voting rights, management duties, member obligations, distributions of profits, and many other clauses that depend on the nature of the LLC. Similar to a partnership agreement or a shareholders agreement (for a corporation), an LLC operating agreement should be adopted as soon as possible once the LLC is formed. In New York, LLC operating agreements are statutorily required to be adopted within 90 days of the formation of the LLC.
An LLC operating agreement is the most important contract between the members of an LLC and it’s important to draft an agreement that suits the specific needs of the LLC owners. CONTACT US today to get a quote on a custom LLC Operating Agreement.