An operating agreement is a crucial, foundational document used by limited liability companies in Michigan (and elsewhere) to govern how major decisions are made, how ownership is structured, and other important functions. It’s a contract that binds the owners to an agreed upon set of rules. Having an operating agreement in place is a formality that helps preserve the business’ limited liability status and prevents the business from being subject to the state’s default rules regarding LLC operations.
Despite these and other reasons for businesses and their owners paying careful attention to what their operating agreement says, how it’s said, and who is advising on those matters (i.e., are they working with a lawyer who has significant experience drafting operating agreements), we still see way too many businesses make the same avoidable mistakes when it comes to creating operating agreements.
Here are seven of the most common.
We are here to help you and your business. If you require helping in incorporating a business, creating an operating agreement, or have questions about your existing operating agreement, please contact Zana Tomich, co-founding partner of Dalton & Tomich.
The business and employment attorneys of Dalton & Tomich take your business just as seriously as you do. Attorneys Zana Tomich and Noel Sterett are trusted by closely held family businesses and others across Michigan and Northern Illinois as invaluable partners and counselors. We guarantee all your calls and emails will be returned within one business day so you can focus on what you do best: running your business.
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