An LLC operating agreement is an important document for any limited liability company (LLC) in Ohio. This agreement outlines the company`s structure, management, and operating procedures. It is a legally binding document that ensures all members are aware of their rights and responsibilities and can help prevent conflicts down the road.
In Ohio, LLCs are governed by the Ohio Revised Code, which outlines the requirements for operating agreements. While Ohio does not require an LLC to have an operating agreement, it is highly recommended that one be created. Without an operating agreement, the company will default to the state`s default provisions, which may not align with the members` expectations.
What should be included in an LLC operating agreement in Ohio?
1. Ownership and Management Structure: The agreement should outline how the LLC is owned and operated. This includes the number of members and how they will vote on decisions. It should also outline the management structure of the company, whether it is member-managed or manager-managed.
2. Capital Contributions: The operating agreement should outline how much each member has contributed to the company`s capital and what percentage of the company they own. It should also detail how profits and losses will be distributed among members.
3. Voting and Decision-Making: The agreement should outline the decision-making process for important matters, such as adding new members, amending the operating agreement, and selling the company.
4. Roles and Responsibilities: The agreement should clarify each member`s roles and responsibilities within the company. This includes their duties, rights, and obligations.
5. Dissolution: The agreement should detail the process for dissolving the LLC, including how assets and debts will be distributed among members.
Overall, an LLC operating agreement is a crucial document for any LLC in Ohio. It outlines the company`s structure, management, and operating procedures, and can help prevent conflicts down the road. While Ohio does not require an operating agreement, it is highly recommended that one be created to protect the company and its members.