Annual Business Checkup: Operating Agreements - Campolo, Middleton & McCormick, LLP

Annual Business Checkup: Operating Agreements - Campolo, Middleton & McCormick, LLP

For New York LLC’s, the law requires members to enter into an operating agreement. Often, legal requirements turn into normal checklist items, and operating agreements dangerously contain the bare minimum. In an LLC, the members do not hold shares of stock. Thus, the rules and procedures of an LLC are set forth in an operating agreement, not a shareholder’s agreement. Like a shareholder’s agreement, an operating agreement should define the right…