Operating Agreement Sign For Free

If there is no operating agreement, you and the co-owners will not be suitably equipped to reach any settlements concerning misunderstandings over management and finances. Worse still, your LLC will be required to follow any of your state's default operating conditions.

Ware. No legal agreement is valid unless it is "executed" pursuant to the rules. Business-related agreements generally must be signed in order to be executed, and thus properly made valid.

The proper signature is "John Smith, Manager, ABC Company, LLC." Since companies cannot sign for themselves, this signature identifies the person signing, the title and authority of the person, and the name of the contracting party.

There is no requirement that the operating agreement is notarized. Even without being notarized, the document is still considered legally enforceable among the parties. However, some businesses will still have the signatures notarized to make things feel more official.

As a quick refresher, operating agreements are legal documents that ensure the LLC is conducted in a proper manner and protects the personal liability of the business. Most states do not require LLCs to have this document, so many LLCs choose not to draft one.

If you choose to use an attorney to help you create this document, the price could be anywhere from an hourly rate to a flat fee somewhere around $600 or more. Who signs an operating agreement? Every member of the LLC and the manager or managers (if there are any) need to sign the operating agreement.

Why do you need an operating agreement? To protect the business' limited liability status: Operating agreements give members protection from personal liability to the LLC. Without this specific formality, your LLC can closely resemble a sole proprietorship or partnership, jeopardizing your personal liability.