District of Columbia PLLC Operating Statement
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FAQ
You should make sure you have an operating agreement for your PLLC. (Unlike most other states, Texas statutes refer to this document as a "company agreement.") Unlike professional licenses, articles of organization, naming restrictions, and service restrictions, this is not a state requirement.
An operating agreement is a limited liability company's governing document. It is written by the LLC's members, who outline both the management and ownership of the company within the agreement.
You may also contact the Department of Consumer and Regulatory Affairs via phone at (202) 442-4400 or email at dcra@dc.gov for assistance on how to perform a Washington D.C. LLC name search.
Common pitfalls of a poorly drafted Operating Agreement include failing to: (i) specify what authority managers or members have; (ii) carve out key decisions that require a higher approval threshold (e.g., dissolution, sale of all or substantially all of the assets of the LLC, etc.); (iii) address how deadlocks in the ...
LLC operating agreements usually provide much more information, and almost all the provisions for how the business will be managed, and the rights, duties, and liabilities of members and managers are contained in the operating agreement. An operating agreement is a private document.
Washington state doesn't legally require an LLC to adopt a written operating agreement. However, a written operating agreement is important for proving ownership and limited liability status. It can also help you resolve disputes.
All the members of a Washington DC PLLC must be professionally licensed in the District of Columbia for the services the business offers. It's important to make sure all practicing members of your PLLC are licensed and in good standing with your profession's DC licensing board before you form your business.
A partnership agreement and an operating agreement are very similar in what they define: ownership and investment stakes, division of profits and losses, and so on. However, a partnership agreement is used in partnerships, while operating agreements are used in LLCs.
