The Limited Liaibility Company Operating Agreement

Written by Adam Peck Category: Injury Law January 16th, 2013 2 min read

The LLC operating agreement is a document created when setting up an LLC which governs how the LLC is going to be maintained and operated (the LLC operating agreement is similar to a partnership agreement or corporate bylaws) says California Business Attorney Steven C. Peck.

As a result, the LLC operating agreement is considerably more detailed than the articles of organization. The LLC operating agreement should address whether the LLC is going to be member-managed or manager-managed, and should outline what powers the members and/or managers will have. It should also address how the LLC handles meetings – how, when and where meetings are held, what notice is necessary before holding a meeting, what qualifies as a quorum, how voting and elections are handled, etc. The LLC operating agreement typically covers some other related issues, as well, such as who has the power and right to audit the company books and records, how the fiscal year is defined and how the agreement itself can be updated and amended.

Once you have prepared your LLC operating agreement, you do not need to file them, like you do with articles of organization. Instead, they should simply be maintained in your company records. However, you may need to formally adopt the agreement – you should check the laws for the state you are organizing in. In some states, the incorporator has the power to adopt the agreement, other states require the first board of directors to formally adopt the agreement, and the remaining states leave both options open.

Share it

Questions? Check with Peck Today

Blog Lead Form

Elder Abuse and Neglect in Assisted Living Facilities

Elopement in Nursing Homes

Assisted Living Abuse

Settlement Reached in Assisted Living Facility Death

Assisted Living Abuse and Neglect Attorneys

Written by Adam Peck

Expertise: Personal Injury

Adam J. Peck, ESQ is a principal with Peck Law Group, APC. In 2008, Mr. Adam Peck received his Juris Doctorate from Whittier Law School where he graduated Cum Laude. His practice is primarily dedicated to representing Elders, Dependent Adults, along with their loved ones and family members, who have suffered horrific personal injuries.