It is one thing to start a business, but a whole other matter to keep it running. Once you have filed the necessary paperwork to register your Limited Liability Company or Limited Liability Partnership in Florida, you may think you are ready to get to work—after all, Florida law does not require an Operating Agreement for these entities. Yet, absent such an agreement, your enterprise may be far less effective.
That is why the Business Attorneys at Jurado & Associates, P.A. specialize in drafting an Operating Agreement that will protect your interests and allow your enterprise to thrive.
Why an Operating Agreement Matters
Just because it is not mandatory does not mean an Operating Agreement is expendable. Like the constitution of a country, it sets forth the governing framework of your LLC or LLP, covering virtually every matter of importance: The members and officers of the business, their rights and duties, how shares in the business will be distributed, and so much more.
An Operating Agreement is the foundation of your Limited Liability Company or partnership: The stronger it is, the stronger the business it is built upon. It does not matter what kind of business model you have or what your enterprise specializes in: An Operating Agreement will help ensure that your entrepreneurial vision is clear and reflects your company’s unique goals and needs.
Without an Operating Agreement, your business will be subject to the default rules set forth under Florida law. These rules may not capture the specific needs and requirements of your business, nor be as clear or intuitive to persons involved in the business. Other key functions of an Operating Agreement include:
- Establishing where founding members stand and what they do. Not only does this help ensure that the business is operated smoothly, but it helps prevent disputes over each person’s individual rights, obligations, and liabilities.
- Spelling out exactly what kind of business you are running. It is usually not enough to simply state that the business entity is an LLC or LLP and file as such: If the operating model is not clear, this can lead to legal issues, such as a court or creditor trying to go after the personal assets of members to fulfill the company’s debts—in contravention to the liability protection of these entities. Therein lies the next advantage:
- Addressing the particular needs of your business. An Operating Agreement should reflect your unique vision and clearly establish the rules, guidelines, and procedures that pertain to your governing style. Rather than a one-size-fits-all approach, your Operating Agreement must conform to what works best for your business.
- Helping clear up or prevent disputes. Conflicts, misunderstandings, and disagreements are a fact of life, especially when business interests are involved. An effective Operating Agreement incorporates dispute resolution mechanisms to ensure disputes are well managed before escalating, helping keep things as amicable and smooth as possible.
In short, an Operating Agreement can mean the difference between successful and failure in this complicated modern business environment—which is all the more reason to hire an experienced Business Attorney who specializes in this vital document.
How Our Business Attorneys Can Help
Something as vital as an Operating Agreement should be left to the experts. Jurado & Associates, P.A. has helped entrepreneurs from around the world draft Operating Agreements that reflect their vision, protect their interests, and help keep their enterprises running as smoothly as possible.