Your LLC provides you with two important benefits:
- Limited liability
- Favorable tax treatment
But be aware that your state’s LLC default rules and regulations govern your business as well as your members’ rights and responsibilities.
Sometimes these rules are onerous, but don’t lose heart.
Luckily, your state’s default rules can be overridden by an operating agreement.
Want to make your life a whole lot easier and avoid difficult problems.
Read my new article titled Tax Tips: LLC Operating Agreements—Get One If You Don’t Have One.
Three ways our fact-filled article can help you:
- You’ll learn why “Articles of Organization” won’t solve your problems. To form your LLC you had to draft Articles of Organization and file them with the authorities. But that document won’t override your state’s default rules. To do that you’ll need a written operating agreement as we’ll explain when you read the full article.
- We’ll warn you about the very real dangers you face. If you don’t have a written operating agreement, your state’s default rules may allow others to welcome new members into the LLC without your consent, incur debt or sell assets without your permission, or even dissolve the LLC without your okay! You’ll get the whole story when you read the full article.
- We’ll tell you why single-member LLCs need an operating agreement too. A written operating agreement supports treatment of your single-member LLC as a separate legal entity. It helps ensure that you get full legal protection. We’ll give you all the details when you read the full article.