Operating Agreement Approach

[Ekow Essel]

Hi everyone,

I'm in the nascent stages of establishing an LLC with my partners (4 in total), and am curious if your experience recommends we draft one ourselves or we rely on legal counsel to draft? I've seen some endorsements for the latter, but would love to hear from anyone who's done the former with limited issues.

Thanks in advance! 

[Kathy Henley]

Lawyers know stuff @Ekow Essel. Start the draft yourselves: what each person is contributing to the enterprise, whether money or responsibilities, and how the income comes and goes. Company roles need to be understood. Who keeps the books? How is information to be shared? These two things were overlooked when writing our operating agreement. What happens if more capitalization is needed? Talk now and get it on paper. How will decisions be made if the project gets off track? Then, have an attorney look it over. You will benefit from their experience, like topics that may have been overlooked. You will need an expert to untangle things when it is time to break up, might as well be ready. Less tears.

Any of Darrell Sutton's books are helpful in understanding LLCs and corporations.