Operating Agreement

5 Replies

Does Illinois include an operating agreement as part of a Series LLC or will this have to be done in additon to the process.

Timothy Riley What do you mean by, "does IL include an operating agreement?" Include it in what? You have to provide for one, the state doesn't give it to you.

Could you be a little more clear/specific?

Im in oklahoma but i understand that all states operate the same in this regard. Basically, if you don't provide your own, tailored to your needs, you get the default version provided by the state. Not only will it not likely suit your needs very well, it will be binding without significant efforts to modify it after the fact. In short, right your own. You can view lots of them online and base yours on those. You don't have to reinvent the wheel. If you are willing to skip this step, you are likely not going to follow through with everything else associated with properly maintinaing an llc so why bother forming one?

In the states I'm familiar with (OK and TX), if you don't have an operating agreement, then by default your LLC is member-managed and operates under the state's LLC statute. You would be better off finding some kind of generic Operating Agreement form than operating without one.

If you are looking for asset protection then you should get an attorney to draft one for you it will cost around $400 but it is worth it.

If you use a boiler plate agreement in the event you get sued it could hurt your chances of the LLC standing up in court.

Send me more detail of this agreement.

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