The Importance of Operating Agreements in an LLC

Roy Oppenheim discusses the importance of an operating agreement in an LLC (Limited Liability Company) setup. An operating agreement is vital once the formation documents have been filed with the respective state. It defines the relationship between members of the LLC, decision-making processes, terms for buying and selling interests, and how to proceed if there’s mutual interest in selling the company or if a member wants to buy another out. With years of experience in drafting these agreements, Oppenheim Law can expertly navigate these critical aspects of running an LLC.

Hi, Roy Oppenheim for Oppenheim Law. I wanna talk today about the glue of the LLC. The glue of the LLC is after you file the formation documents, the charter with the respective state. You need what’s called an operating agreement. And the operating agreement discusses a relationship between you and any other members of the LLC, as well as how decisions are made. Who makes decisions, what needs a majority, a super majority, what happens if someone wants to buy? What happens if someone wants to sell, you know, sell their interest? What happens if you both wanna buy, sell each other, you know, sell the company, or if one wants to buy the other one out? These are the kinds of issues that are typically addressed in operating agreement, and we’ve been doing these for years. So, Roy Oppenheim, “From The Trenches.”