Why You Need a LLC Operating Agreement
Florida law does not require an Operating Agreement for a LLC, however, if you do not have one in place, your LLC will be required to default to state laws and regulations, which may not be in the best interest of your business. Even a sole member LLC needs an Operating Agreement.
An Operating Agreement serves as a blue-print of how the company is to be run. It states the ownership interests of the parties, the management details, and the members’ financial rights. It is important to have an Operating Agreement so that your corporate formalities are in place and you are shielded from personal liability, and it explains the rules and responsibilities of how to run the business and resolve disputes between the owners.
At a minimum, the Operating Agreement must be in writing, every member must sign it, the members’ interest, contributions and responsibilities must be well defined and the management structure explained. The Operating Agreement will act as proof of your running a business with the corporate formalities in place as part of the liability protection afforded by LLC formation.