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How to Send LLC Operating Agreement

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In this tutorial, Jim Hart, founding attorney at Hawthorn Law, discusses the importance of an operating agreement for your LLC. He explains that an operating agreement serves as a contract between you, the business owner, and your LLC, particularly crucial for single-member LLCs. Hart emphasizes that having an operating agreement protects your business legally and helps avoid common mistakes entrepreneurs make during LLC formation. He encourages viewers to check out another video on mistakes related to operating agreements for further insights.

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Below are some common questions from our customers that may provide you with the answer you're looking for. If you can't find an answer to your question, please don't hesitate to reach out to us.

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Can I make my own operating agreement?

Most states do not require LLCs to have this document, so many LLCs choose not to draft one. While it may not be a requirement to have an operating agreement, its actually in the best interest of an LLC to draft one. And by drafting it, Im referring to creating a written operating agreement.

Do I need to file my operating agreement with the state of California?

In addition to filing the applicable documents with the Secretary of State, an operating agreement among the members as to the affairs of the LLC and the conduct of its business is required.

Does Illinois require a specific purpose for an LLC?

The purpose clause is the statement of the character of the business objectives of a limited liability company. The Illinois Limited Liability Company Act permits Illinois LLCs registered with the Office of the Secretary of State to be formed for any lawful purpose.

Do I need an operating agreement if its just me?

It can secure your liability protection. An operating agreement helps protect your personal assets from your business assets. This is crucial to understand, as its the primary main reason that your single-member LLC needs an operating agreement.

Does a single member LLC need an operating agreement in Illinois?

Under the Illinois Limited Liability Company Act (LLCA) (805 ILCS 180/1-1 et seq.), an LLC is not required to have an operating agreement (805 ILCS 180/15-5(a)). However, a written operating agreement may help minimize disputes among the members regarding the terms of their agreement.

Is an operating agreement required in Illinois?

Illinois does not require an Operating Agreement to be submitted to the Secretary of State when filing your Articles of Organization paperwork, but the law does allow for an Operating Agreement to be adopted by the members of the LLC.

What is an operating agreement state of Illinois?

An Illinois LLC operating agreement is a binding document that establishes the ownership, operations, officers, and responsibilities of company members. The agreement acts as the bylaws and oversees the day-to-day operations of the company.

How do I create a simple operating agreement for an LLC?

An LLC operating agreement should contain provisions to cover: Basic information about the LLC. A profit and loss allocation plan. The LLCs purpose. The management structure. Ownership percentages of each member. Voting rights and procedures. Meeting frequency. Procedures for bringing in new members.

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Send LLC Operating Agreement