An operating agreement is required for all LLCs setup in California. When you form your California LLC spend time to make sure that your operating agreement is complete and provides an adequate roadmap for your company and its members.
In California an LLC is filed with the secretary of state. The operating agreement however, is not filed with the Secretary of States Office. It is a document that is maintained by the LLC to provide a roadmap to the members of the LLC. It will detail how the members and managers should operate within specific situations.
Having an operating agreement is required in California
The operating agreement is flexible, and you can include and exclude certain articles as they apply to your situation. Some of the more frequent inclusions to an operating agreement are:
- Registered agent information and address.
- Capital contributions of the members.
- Profits & Distributions
- Powers of Management including manager powers.
- Compensation of Directors/Officers
- List of Mangers, Contributions, Members
An operating agreement is required for all Calfornia LLCs. Not only is it required, but it is in you best interest to maintain an operating agreement for your business. The existence of this document will help you keep peace among the members. It will give you a path to solve/answer difficult questions. Follow the law, keep your business running smoothly, setup and maintain an operating agreement for your California LLC.