When forming a limited liability company (LLC), it’s important to have an operating agreement in place. An operating agreement is a legal document that outlines the ownership and operating procedures of the LLC. But who exactly needs to sign this crucial document?
Generally, all members of the LLC should sign the operating agreement. This includes both managing and non-managing members. However, if there are multiple owners, it may not be feasible to have everyone sign the document at the same time. In this case, the operating agreement can be signed by the majority of the members and become effective immediately. The remaining members can sign later on.
It’s important to note that the operating agreement is not typically filed with the state. It is an internal document that governs the operations of the LLC. However, some states require the operating agreement to be kept with the LLC’s records, and it may be requested by banks or other institutions that the LLC does business with.
In some cases, a single-member LLC may not need an operating agreement. However, it’s still recommended to have one in place in case the LLC takes on additional members in the future. A well-drafted operating agreement can help prevent disputes and ensure that the LLC is run in a fair and efficient manner.
When it comes to signing the operating agreement, it’s best to consult with a lawyer or accountant experienced in LLC formation. They can help ensure that the document is legally sound and meets the specific needs of your business.
In summary, all members of the LLC should sign the operating agreement, and it’s important to have this document in place to govern the operations of the business. Having a well-drafted operating agreement can help prevent disputes and ensure that the LLC is run in a fair and efficient manner.