21st May 2008
Setting up an LLC? Don’t forget the Operating Agreement
Q: Can I set up an LLC without an attorney?
A: Certainly. Just go to the website of the Secretary of State for your state, find out the requirements, send in the forms and a check and you’re set. Well, not quite.
You still must spend the time putting together an Operating Agreement. This document is like a Partnership Agreement, and it spells out who is doing what with who and what happens if someone leaves the LLC or wants to be bought out. On and on. It is very important to get an attorney involved with this writing process. You can put together a draft and work out the issues, but have an attorney look at the document and listen to his/her advice. If you have a single-member LLC, it may not be as important, but a multi-member LLC must have a signed operating agreement. Don’t wait until you get “settled.” Do it now.
I’m not an attorney; my purpose is to help you get started with your practice. Let me know if you have questions about this subject, or check out StudentDC.com for more information about LLC’s.
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