Operating Agreement Lawyer in New York
Setting up a business in New York requires making multiple decisions and having various goals. For instance, you want your target audience to identify your brand, name, logo, products, etc. You think of strategies to market your products in the best possible ways. However, before you jump the gun, you need to register your business with the state to fulfill all your goals.
If you have decided to form your company as a Limited Liability Company (LLC), you will receive tax benefits, less stringent reporting duties, and liability protection. However, to ensure all that, you will need the help of a qualified business attorney in New York to draft an operating agreement. The lawyers at Mekhtiyev Law Firm can help you draft the operating agreement needed to set up your business.
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New York Requires Operating Agreements from LLCs
All the US states demand new LLC owners to file articles of organization that are akin to a business’s incorporation papers. Even though most states do not require LLCs to adopt a written operating agreement, New York does put this condition on Limited Liability Companies.
Once you file the articles of organization, you have up to 90 days to adopt an agreement. If you draft the agreement before forming your company, it will not become effective until you have filed the articles of organization. An operating agreement is like the bylaws of your corporation. It governs the financial and managerial duties and rights of the members of your LLC.
Our lawyers in New York have experience in drafting these operating agreements. They will collaborate with you to draft your agreement and make sure to include everything that is necessary for you to protect your business. We will help you ensure your business can run smoothly and protect you from costly management and financial disputes.
Essential Information in an LLC’s Operating Agreement
An operating agreement essentially details how an LLC will be managed and contains comprehensive information on member contribution and the tax choice between corporate and pass-through. It includes partnership agreements similar to bylaws and includes organizational details specific to LLCs. With an LLC operating agreement, you can effectively override a state-supplied default rule for LLCs by drafting a specific operational rule in your agreement.
Ideally, an operating agreement should include the distribution of profits and the course of action to be taken if a member does not abide by their prescribed responsibilities. It should also include what will occur if a member dies or decides to sell their membership. All LLC members must sign the agreement, agreeing to its terms that are binding in the court of law.
Here are some essential topics covered in an LLC’s operating agreement:
- The verified name and address of the LLC
- Identity of the members of the LLC, also known as the parties to the agreement (they can be individuals or corporations)
- The capital contributions of all members and the mention of situations in which more capital investment might be required
- Identity of the people or entities managing the company
- The relative powers, standings, duties, and rights of all members and managers
- A detailed description of the company and its purpose
- Procedural requirements for decision-making, mediation, litigation
- Protective clauses
- Dissolution events and procedures for winding up the company
- Access to information and records
The Importance of a Well-Crafted Operating Agreement
The more comprehensive your operating agreement is, the better it will be for avoiding conflicts between members down the road. Unresolved conflicts can lead to an impasse or exhausting and costly litigations that will impact your company. However, most of these issues can be resolved with an effective operating agreement, as it will address many of the conflicts that might arise between members.
The operating agreement lawyers at Mekhtiyev Law Firm can draft your operating agreement or amend your established agreement. We will ensure that your new agreement encompasses all of your values and answers to possible conflicts. It will detail your rights and powers and stipulate the rules your LLC will have to operate under for guaranteed success and conflict-less management.
Frequently Asked Questions
How is ownership determined in an LLC?
Every member of an LLC must agree to the contributions assigned to other members, and the value those duties derive should be mentioned in the operating agreement. Their contributions can be monetary, property-based, or service-rooted. The contributions can vary in percentage, and the ownership percentage should be decided based on individual contributions. As the LLC grows and the contributions of its members grow with it, you can hire our operating agreement lawyers in New York to amend your agreement.
How much does it cost to have an LLC operating agreement drafted?
The cost of having an operating agreement drafted will vary based on how experienced your lawyer is, the number of members in your LLC, and your plans for growth and investment. Typically, drafting an operating agreement for a single-member LLC can cost anywhere from $400 to $1000, while crafting an LLC operating agreement for multi-member companies can cost anywhere between $800 and $5,000. You can request a complimentary consultation to get a free quote from our seasoned lawyers.
Can I have my current LLC operating agreement amended?
Absolutely! Suppose you have an operating agreement that no longer encapsulates your company’s operations and the duties of its members. In that case, you can have it amended by our expert business attorneys in New York. With that said, you need to ensure that all members of your LLC agree to the amended agreement. You also need to ascertain that the agreement follows the stipulated amendment rules in the original agreement. Our lawyers can guide you further once we have studied your original operating agreement.
Contact a Seasoned Operating Agreement Lawyer in New York Today
If you’re looking for one of the best, most knowledgeable business lawyers in New York, get in touch with Mekhtiyev Law Firm today. We can help you draft a comprehensive, reliable operating agreement that will contribute to your business’s success and keep your members happy.
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