After my attorney helped me in forming my LLC he sent me a letter letting me know that he was able to put together a Draft Operating Agreement for the entity. I was wondering if anyone knew what benefit this was and if it was necessary. Any help would be appreciated. I didn't want to to call him and ask him what it was.

Call him back and ask him what it is.

If there is one thing you gotta get over quick in this business, it's being to emberassed to ask questions that might make you feel stupid.

When I was looking into LLCs and such, I ended up settling on the cheapo route - the same thing my wife did when she setup her LLC. She did it through some online place that does the whole works then just sends her a binder, seal, etc. with all the pertinent info.

R

Thanks Robert. I live in a small town that I just moved too and was worried that word would travel fast that I had no idea what I was doing I will call him and ask.

I know you have to have one for a Florida LLC. It sort of outlines how the company operates, and is a necessary component without which the veil could be pierced.

an operating agreement are a set of rules that your company abides by..they are very generalized and other than inserting your company name, it probably took your lawyer 30 seconds to complete. They are very similar to bylaws for incorporations.

Would there ever be a situation where i would need to produce such a document?

It just protects you and sets out your responsibility. It details the responsibilities of each member of the LLC.

Ours is only about 7 or 8 lines. It sets forth titles and responsibilities.

In GA, the RE commission asks for it in your broker application package.

Maybe, if you got sued and had to demonstrate that you in fact had a legit LLC running in order limit your liability. Aside from forming an LLC to deter lawsuits, you may eventually have to defend your business in one in which case you'll want to have everything in order.

Your state probably also requires an annual report at the very least to keep your LLC legit.