(732) 988-5362|bburns@praxislegalsolutions.com
Praxis Legal Solutions - Lawyer & Legal Services in NJ

Praxis Legal Solutions

Client focused. Solution oriented.

  • Home
  • About
  • Areas of Practice
    • Contract Law
    • Corporate Law
    • Employment Law
    • Litigation Management
    • Mergers and Acquisitions
  • Contact Praxis
  • Payment Form

Business
Law

Business
Transactions

Contracts

Employment
Law

Legal
Services

Copyrights and
Trademarks

Yes, Virginia; You Really Should Have an Operating Agreement.

April 29, 2019 by Barbara Burns Leave a Comment

You wouldn’t drive a car without insurance, would you?  Maybe you would, if you thought you could get away with it.  But, when your car is rea-ended, or you rear-end another car, you’ll be weeping while you write the checks to pay for the damage, and the fine for driving while uninsured.

No one plans to have a car accident, but most people plan for a car accident.  So, while you wouldn’t plan to have a blow-up with your business partner, it’s smart to plan for that possibility.

Operating Agreements

Operating agreements are like an owner’s manual for limited liability companies.  They provide the instructions for dealing with the range of contingencies that arise in the operation of a business.

Need capital?  Your operating agreement will describe the when and how to bring in one or more investors.  Want to borrow money or acquire a competitor?  An operating agreement will lay out the process for the members to consider and vote on a major business decision.

Operating agreements define and describe the functions and limits of authority of the officers of the company; what they may and may not do on their own, and when the approval of the members of the company is required.

An operating agreement will often contain detailed provisions on how items of income and loss are allocated, and when and under what circumstances distributions of income will occur.  What may seem dense and needlessly paragraphs of “legalese” can come in handy when members prepare their tax returns.

Most importantly, a well-drafted operating agreement can function to resolve disputes between and among the members of an LLC, and to provide a mechanism for the orderly withdrawal or a member or the sale of a membership interest.

Operating agreements are like insurance (and instruction manuals); there when you need them. For more information on business law and operating agreements, contact us today.

Related Posts

  • Medical Marijuana:  Tough Issues for Employers
  • Nonprofit Corporations:  The BasicsNonprofit Corporations:  The Basics
  • Employment Law New JerseyResponsibility to Temporary Employees Under State and Federal Laws
  • Before You Sign: Negotiating a Commercial LeaseBefore You Sign: Negotiating a Commercial Lease
  • Online Reviews: A Blessing and a CurseOnline Reviews: A Blessing and a Curse
  • Bulk Sales Laws A Banana Peel for the UnwaryBulk Sales Laws A Banana Peel for the Unwary

Filed Under: Business Law

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

You May Also Like..

  • Consumer Arbitration - Ocean County, NJConsumer Arbitration
  • Websites, Mobile Apps and the ADA
  • Nonprofit Corporations:  The Basics
  • licensing, njDifference Between Licensing and Franchising
  • Over-billing. Client, Beware.

News Update

Recent Posts

  • Contract Law – Understanding the Basics
  • New Jersey Bans Salary History
  • Earned Sick Leave Is Mandatory In New Jersey
  • Websites, Mobile Apps and the ADA

Categories

  • Business Law
  • Contracts
  • Copyrights
  • Copyrights and Trademarks
  • Employment Law
  • Fair Use
  • Legal Services
  • News
  • Taxes
  • Technology
  • Trademarks
  • Valuations

Areas of Practice

  • Contract Law
  • Corporate Law
  • Employment Law
  • Litigation Management
  • Mergers and Acquisitions

Quick Links

  • FAQs
  • Payment Form
  • Contact Praxis

Company Information

Praxis Legal Solutions LLC

4 Ocean Ave
Ocean Grove, NJ 07756
United States

(732) 988-5362
bburns@praxislegalsolutions.com
Hours:
Mo, Tu, We, Th, Fr: 8:00 am - 5:00 pm

Praxis Legal Solutions - Lawyer & Legal Services in NJraxis Legal Solutions © 2024. All Rights Reserved. | Legal Notice • Sitemap • Privacy Policy

  • Home
  • About
  • Areas of Practice
    • Contract Law
    • Corporate Law
    • Employment Law
    • Litigation Management
    • Mergers and Acquisitions
    • Back
  • Contact Praxis
  • Payment Form