Drafting a Strong Operating Agreement: The Foundation for a Successful LLC
At the heart of every successful LLC is a carefully drafted operating agreement. Similar to a corporate charter or partnership agreement, an operating agreement is the foundational governing document for a Florida limited liability company (LLC). Operating agreements establish the form of ownership and management, the rights and duties of members, the authority of agents to act on behalf of the LLC, and numerous other important issues.Florida’s recently enacted Limited Liability Company Act establishes default rules that apply if the operating agreement does not specify (or if there is no operating agreement). For example, going forward, all LLCs will be member-managed unless the operating agreement says otherwise. It’s important to understand how these rules affect your LLC — and how to get around them if you wish to do so.
Strategic Guidance Rooted in Decades of Experience
Forming an LLC, like forming any business, requires forethought and strategy. You should understand the legal implications of the decisions that go into an operating agreement. At the law firm of Norma Echarte, we can partner with you to implement a strong foundation for your business. Attorney Norma Echarte draws on 20-plus years of experience to identify and avoid potential pitfalls. Ms. Echarte is well-versed in the nuances of Florida’s new LLC law. She can walk you through the multifaceted considerations involved in getting off the ground. Our goal is to equip your LLC with a carefully drafted operating agreement tailored to fit your business.
Ensuring That Every Provision Has a Purpose
Lawyer Norma Echarte applies a keen eye for detail in drafting and reviewing operating agreements. She will ensure that the agreement purposefully addresses key issues — for example, by:
- Establishing ownership and documenting capital contributions
- Electing a form of management that makes sense (either member-managed or manager-managed)
- Placing limits on members’ rights to transfer their interest or withdraw
- Outlining disbursement of profits and losses
- Addressing potential tax implications — including FIRPTA — for certain LLCs with foreign members
- Establishing conditions and procedures for dissolving the LLC
For more information, and to arrange a free initial consultation, please call 305-755-7440. We have convenient offices in Miami (our principal office) as well as Fort Lauderdale, West Palm Beach and Boca Raton (our satellite offices).