LLC Operating Agreement Template

 LLC Operating Agreement Template is Key

LLC operating agreement template is a key to your company’s legal protection. Yet many small business owners don’t even bother to use one. After all, if they file the articles of organization, they have a limited liability company (LLC) as far as the state is concerned. Why take the time to prepare an LLC operating agreement?

An LLC operating agreement is a document that you write for your company. It is true that you never file it anywhere-nobody knows about it. But that does not mean that it is not important. It controls everything that happens in your LLC-how it is taxed, how it is run, what happens to the LLC after you die, what people have to do to get the company assets if you need to declare bankruptcy, and how company assets are protected. It can save your company in the event of a lawsuit.

LLC Operating Agreement Template

An LLC operating agreement template comes in many forms. Many internet sites offer it as a costly add-on to their “free articles of organization kits.” Consequently, many small business owners just skip it, figuring they can save some money. Unfortunately this is costly mistake. Other places may offer a one size fits all LLC operating agreement template. This is rarely adequate because there are certain choices and clauses that must be included to give your LLC the best asset protection and tax choices for your business.

Write Your Own LLC Operating Agreement Template

Yes, you get to write your LLC operating agreement template. This is a great opportunity. The three or five page forms you sometimes get off the internet aren’t going to come close to addressing the issues you need to cover in your operating agreement. Your LLC operating agreement template should be somewhere between 20 and 30 pages long and filled with choices.

Let’s consider an example. Most state statutes claim that operating an LLC doesn’t require you write an operating agreement. But, when a tenacious lawyer comes after your business, everything changes. When the lawyer gets you into court, one of his main arguments will be whether or not you’ve treated your LLC as a “company.” He will argue that your LLC is just your “alter ego.” He will then come after your personal assets.

If you use the LLC Wizard’s Complete Operating Agreement template, which includes 90 minutes of audio review and written instruction to design your document, you will have an understanding of how to avoid the attorney’s argument. When you operate your LLC with this protection, not only will your company assets be protected, so will your personal assets. You will know how to follow the LLC’s formalities checklist. The LLC “formalities” were basically developed to act as a checklist for the courts. It’s like LLC lawsuit insurance.

If you don’t have the checklist, I’ll give you one. (Get your free 27 point checklist.) If you’ve treated your LLC as a formal company, then the courts will treat it as a company too and protect you personally from the company’s problems.

Checkout my complimentary Operating Agreement Template for ideas, or get my Complete Operating Agreement with 90 minute audio instructions and customizable forms and make sure you get all the asset protection and tax advantages possible.

Remember, there’s a 30 day money back guarantee if you’re not satisfied.

By Lee Phillips, U S Supreme Court Counselor