An operating agreement is an essential business document to be prepared along with the document of formation. An operating agreement points out who the partners are and clarifies the extent of ownership of each. It mentions the capital contributions of partners. It spells out the procedure for loans for members and raising capital from time to time. It describes the procedures for calling and cancelling meetings. It is, in short, an exhaustive document describing duties, responsibilities, and the procedures to be followed for fulfilling them. A clear business operating agreement also serves to protect partners’ interests in case the partnership should be dissolved.

The Law Offices of Alex R. Hernandez Jr. have the expertise and experience in drafting and enforcing operating agreements. Partnership disputes are often the most acrimonious type of business dispute. The best situation to be in is to do all that you can to pre-empt misappropriation and funds. A clear operating agreement serves to deter such misadventures, and in case, a business dispute arises, it helps to clear matters.

We also review existing operating agreements and byelaws and identify any scope for updating the agreement and making it more robust.