Operating Agreements for LLC's and Corporations
My name is Karl S. Pearson, Scottsdale, AZ business attorney and founder of Pearson Law, PLC. I help Clients set up operating agreements for LLC's and Corporations as well as assist in resolving legal disputes involving their business.
With more than 25 years of legal experience, I collaborate with individuals and businesses in Scottsdale, AZ, to resolve legal disputes and provide guidance to protect their financial interests, such as operating agreements.
What is a Business Operating Agreement?
An Operating Agreement is a contract between LLC members that defines how the business will be run. Think of it as a pre-nuptial agreement between business owners.
Bylaws and Shareholder Agreements govern corporations.
Operating Agreements and Shareholder Agreements address the decision making and financial aspects of the business such as…
- Who is going to run the day-to-day operations?
- How are the profits and losses distributed?
- How can new members be admitted?
- What happens if a member dies?
- What happens if the members no longer want to be in business together?
A good agreement will make the details of a business arrangement clear to all of the members, thereby minimizing misunderstandings and disputes.
Do I need an operating agreement?
Having a business operating agreement in place that specifies how your company is run will help you avoid disputes.
From decision making to the financial aspects, a predefined business arrangement makes the details clear to all of the members, thereby minimizing misunderstandings and disputes.
Are Operating Agreements in Arizona required to be in writing?
Although oral contracts in Arizona can be legally binding, it can be challenging to prove the terms and conditions of a verbal agreement. If the parties involved in an oral contract have a dispute, each party will have a different view of the terms and conditions.
A sensible business approach is to insist on a written contract.
When should I create an Operating Agreement for my business?
A good practice is to create the contract at the time you form the business. However, there is no time limitation. Business owners can enter into an operating agreement at any time.
Note, some banks require the submission of an operating agreement for you to open a business account.
Personal, Legal Representation
When creating an operating agreement, it is vital to have a knowledgeable and experienced business attorney on your side.
We've all heard horror stories from the legal trenches.
- My attorney won't return my phone calls.
- My lawyer failed to show up at the preliminary hearing!
- The attorney that I initially talked to disappeared into the abyss and someone that I'm not familiar with showed up in the courtroom in their place.
I understand the importance of personal attention delivered promptly. When Clients hire me to represent them, they have direct access to me throughout their case, and you will never be handed off to an Associate Attorney with little experience.
Representing Arizona businesses of all sizes, as well as individuals, I believe that everyone deserves straightforward answers.
Committed to helping my clients protect their business interests, unlike large law firms, at Pearson Law, you can expect personal attention every step of the way.
A well written limited liability operating agreement is a must for your company. At Pearson Law, I help filter out the legal jargon to help clients fully understand their legal rights and obligations.
With over 25 years of experience, when it comes to your business's health, financial success, and future, at Pearson Law, you can count on knowledgeable strategies to resolve business disputes, litigation, contracts, operating agreements, bankruptcy, and more with a personal touch.
When you need an experienced, reliable commercial litigation attorney, contact Scottsdale, AZ Business Attorney Karl Pearson
, to learn what your legal options are or call (480) 820-1800.
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