LIMITED LIABILITY COMPANY (LLC) AND THE OPERATING AGREEMENT

BUSINESS LAW – SOUTH FLORIDA ATTORNEYS

Often partners, and former partners call me to represent them when they have parted ways, and are in the middle of a dispute, without a clear guideline or written instructions as to how the dispute should be resolved.  Whether partners have had a falling out because of unmet expectations regarding their capital contribution and returns of such capital, or the role they play within a company, the Operating Agreement is crucial to any business. 

If you are just starting a new company, limited liability company, or other type of business structure, it is crucial to set forth the terms of your agreement and understanding between all partners, so there is no dispute in the long run.  An Operating Agreement protects the business in the long run by defining each partner’s responsibilities, how the business will be managed and how conflicts and disputes will be resolved.

When friends and family start businesses together, they are on good terms and don’t ever imagine a falling out or parting of the ways can occur. Agreements are made verbally and often not put down in writing.  It is not uncommon to have nothing formalized and then, when a dispute arises, there is a clear misunderstanding as to each parties role and responsibilities.

By hiring a lawyer to create an Operating Agreement at the time the parties form the LLC, essential terms of the arrangement and expectation of each party can be set in writing.  The Operating Agreement serves to define each parties role, capital, return on capital, and expectations.  The Operating Agreement can be changed from time to time as required and will serve as the guideline to determine what needs to be done or how a dispute is handled.

At the Law Offices of Jacqueline A. Salcines, PA, as both an accountant and business lawyer, Jacqueline Salcines has been assisting her clients for over 20 years.  We can incorporate your business, listen to your needs and draft the Operating Agreement to address all the parties needs and concerns.

With Offices in Coral Gables, we are a phone call away. Consult today.