What Terms Should be in the LLC Operating Agreement?

 When setting up an LLC, the most important document is the Operating Agreement.  While Articles of Organization must be filed with the State to create an LLC, the Articles normally contain very little information about the LLC.  The Operating Agreement is where all of the rules affecting the members and the LLC are generally found.  A well-drafted Operating Agreement will contain provisions that set forth the relevant rules regarding management of the LLC and voting rights of members, allocation of profits and loss among members, distribution of cash and other assets among members, restrictions on transfer of ownership units, procedures upon termination and liquidation, and procedures for amendment of the Operating Agreement.      

While some situations are similar, no two situations are exactly alike.  Each situation needs to be reviewed, and an Operating Agreement suitable for such situation should be crafted.   If I can help you put together an LLC Operating Agreement, please let me know.  Jsenney@pselaw.com or 937-223-1130

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AND ONE MORE THING.  If you or a friend have invented a new product, or have improved an existing product, you need to be careful to preserve your rights as to such invention or improvement.  To protect your rights, you can seek a provisional patent or a full utility patent.  But you must make an application within one year after the first public disclosure of the invention.  A public disclosure is any disclosure of information about the invention that is made without restriction on the recipient’s right to disseminate such information.  To avoid making a public disclosure, it is important to have every person or entity that will receive information about such invention sign a non-disclosure agreement.  Call or email me if you would like to talk about protecting your intellectual property rights at Jsenney@pselaw.com or 937-223-1130.