Best Employment Lawyers in Spring, TX

How to Create an Operating Agreement for Your Texas LLC An LLC operating agreement is a document that establishes the rights and obligations of members of an LLC (limited liability company). This document is essential to defining how the LLC will operate, be governed, and how profits will be distributed. If you’re an LLC member, it is strongly advised that you create an operating agreement for your organization. An experienced Houston business law attorney can guide you in drafting and executing this important document. That’s where the Oracle Legal Group comes in. What Should Be Included in an LLC Operating Agreement? One of the main functions of an operating agreement is to clearly define the rights and expectations of LLC members. This goes a long way in avoiding misunderstandings and minimizing the likelihood of a dispute, and therefore litigation. Although every LLC operating agreement will vary in its details, most will contain at least the following elements. How much each LLC member will contribute in terms of capital, cash, assets, and services The percentage of the company each member owns based on his or her contributions How profits and losses will be distributed among members Each member’s rights and obligations, including voting rights, management duties, and future. contributions to the company Rules and protocols concerning member meetings How the shares of a departing or deceased LLC member will be purchased or transferr...