An operating agreement (OA) can be very similar to a partnership agreement in that it is a document that is drafted, typically at the inception of the business (in this case an LLC), to lay out all of the terms of the agreement. A well drafted OA will detail the amounts and procedures for contributions made by the members of the LLC, both at the inception of the LLC and subsequent to start-up. The OA will also establish the procedures for the distribution of profit, the rights and responsibilites of the members of the LLC, and the procedures for dispute resolution.

At Springmeyer Reddy, we design our operating agreements to limit the personal liability of the members to the fullest extent allowable by California law. We collaborate with our clients to create an agreement that fully reflects the management and financial relationships intended by the members of the LLC, and which optimize management efficiency. We anticipate and address contingencies, and provide mechanisms for amending or modifying the agreement after its inception.

If you are interested in forming an LLC or adding an operating agreement to your existing LLC, please contact us or fill out the information below for a California business attorney to begin working on your document.