When dealing with small businesses, one of the first things I ask is if it has an operating agreement. Unfortunately, the answer is a coin flip. If there is an operating agreement, my follow-up question is whether the members are aware of what is contained in the operating agreement and does it reflect the current nature of the company. Inevitably, I am met by blank stares. On the other hand, when entrepreneurs come to me to form their LLC, the operating agreement is where they try to “cut corners.” This post is an effort to end these risky behaviors.
