Limited Liability Company: Operating Agreement

Part 5

To read Part 1, click here. To read Part 2, click here. To read Part 3, click here. To read Part 4, click here.

Disclaimer: This blog post focuses on North Carolina law and follows the NC Secretary of State rules. We cannot speak nor advise you on what other states’ rules and policies are for limited liability companies.

*This information is taken from the North Carolina Secretary of State’s website and can be viewed here.

An operating agreement governs the internal rules of a Limited Liability Company (LLC). A company’s operating agreement is not filed with the NC Secretary of State. Usually an operating agreement outlines the financial and functional regulations of a LLC. Once the operating agreement is signed by all the members/managers of the company it is an official contract binding them to the agreements’ terms. Most states, like North Carolina, do not require operating agreements. However, an operating agreement is a beneficial document to have because it structures the company’s finances and organization and provides rules and regulations for the company to run effectively and efficiently.

Examples of why YOU need an operating agreement

  1. Operating agreements give members protection from personal liability to the LLC.
  2. You will have business arrangements written down instead of any verbal agreements.
  3. State default rules govern LLCs without an operating agreement. Because state default rules are often very general, your operating agreement can be much more specific and tailored to your LLC.

What is included in an operating agreement?

  1. Percentage of members’ ownership;
  2. Voting rights;
  3. Duties of managers and members;
  4. Distribution of profits and losses; and
  5. Information about company meetings.

Yes, we have a video on that! Check out our video on LLC Formation.

Contact us!

If you have any questions please do not hesitate to email me at john@beerlawcenter.com or john@mathesonlawoffice.com or call 919-335-5291.

Be sure to check out Beer Law Center and Matheson Law Office for all things NC legal.

Contact the NC Secretary of State

2 South Salisbury St.

Raleigh, NC 27601

919-807-2225

Website

Comments

  1. Thanks for this operating agreement sample. It was really useful to outsource some of the operations of my small business. It made it very clear for all the stakeholders during the meeting who is going to do what with what kind of liability. Due to the fact we are also working with distributors outside of the EU we used sole distributor agreement to set up a contract with our sales partners in China: https://www.allbusinesstemplates.com/template/KSZBL/sole-distributor-agreement-chinese/ Also a very usefull sample for those expending their beer business overseas.

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