An operating agreement is the agreement between the members of an LLC in California. The document regulates who controls and manages the entity, how they are removed or maintain their position, who can make decisions and the flow of net profits or losses. Without an operating agreement, properly drafted with your interests in mind, you run the risk of many legal problems arising later down the road. Operating agreements also prove who owns the LLC to third parties (like banks), protect your limited liability status (personal liability for business debts), override default state rules that may not be in your best interests, and prevent misunderstandings about how the company should be governed or even sold.

Because no one knows what the future holds, it’s important for every LLC to have an operating agreement in place as soon as possible; because these are complicated legal documents, it’s important to work with a knowledgeable local contract attorney you trust! Gregory Rutchik, Esq., helps entrepreneurs simplify contract law, get the right protections in place for the business’s future, and find peace of mind. His three decades of experience in both transaction and litigation matters makes his firm the ideal choice to represent you. He can draft a clear operating agreement and explain its terms in a manner that’s easy to comprehend; if a dispute ever arises and you need to rely on the operating agreement, you can have confidence that it will guard your interests. His attention to detail can give you a significant advantage, and his guidance can greatly reduce the likelihood of litigation! Call today to schedule a free consultation.