An operating agreement is a document that governs the financial and managerial rights and duties of the team members of a limited liability company (LLC). Taking some time out of your schedule to create an operating agreement will help your business to run smoothly and can protect you and your business from costly financial and management disputes. These types of disputes can knock even the sturdiest of businesses down. James C Provenza & Associates, PC helps you to protect your company and draft up the governing documents that you need. Once this is completed, many of the other tasks for your business will be simpler to complete.
Operating agreements contain similar text to other types of partnership agreements, but also contain organizational details and descriptions that are specific to their LLC forms. There are certain rules in Illinois and Chicago for this. However, the laws don’t take away your autonomy at deciding what is best for your company.
Some of the key topics typically covered in an LLC’s agreement include:
- Identities of members
- Capital influence of members
- Identities of managers
- Classes and relative powers & rights and duties of members and managers
- Procedural requirements for decision-making, including process for amending the operating agreement
- Protective provisions
- Access to information and records
If you are already part of an LLC or you are just starting your business formation process, a lawyer will help you to draft an operating agreement that will clearly break down the rights and powers of all team members and managers. You can create clear rules for how your LLC operates and who will make the most important business decisions. Your lawyer can also ensure that all agreements and steps will properly interact with Chicago and Illinois rules. The lawyers at James C Provenza & Associates, PC can help you stay in line from the start, making each step of the process easier.
If you don’t have an LLC but you have a corporation, bylaws are required for how the Board of Directions will govern your company. These are similar, but there are statutory requirements for what the text must specifically state, including the number of directors requires, shareholder meeting information, and other special meetings. These are required, but corporation bylaws contain any number of other guidelines and statutes for a business. This all depends on the complexity of the business – in general, the more complex and far reaching the business, the more complex the bylaws.
Corporation bylaws are executed by the BOD, but they can be amended at some time. It is a good idea to have legal help when making amendments or changes, just to ensure you are on the straight and narrow.
Why James C Provenza & Associates, PC?
Our firm helps you to draft business governing documents like bylaws and operating agreements. We take a personal approach to our work, ensuring that your needs are met. We ensure that your bylaws and operating agreements fit with your corporation needs. Do not resort to a “fill in the blank” style of drafting because you are an individual business and need to draft your own ideas.
As attorneys, our team will draft the document for you and educate you about each item. Through education, you will be able to implement the rules that much more quickly and understand what you legally can and cannot do.
Give the team at James C Provenza & Associates, PC a call today to get started on drafting your operating agreements and bylaws.