every business entity needs an “instruction manual” that serves as a guide to how the business will be owned and operated. regardless, if an operating agreement is required, it doesn’t have to be filed with the secretary of state. for multi-member llcs, in addition to providing asset protection and credibility, operating agreements can prevent misunderstandings among members because it provides clear rules and responsibilities and specifies how internal disputes are to be resolved.
however, the operating agreement should include and address terms and issues that are specific to the industry in which the holding company is being used. a company’s operating agreement should change and evolve as the business grows. amendments can be made to your operating agreement that will allow your holding company to make pivotal changes, rather than being locked into a very inflexible structure, so as long as the operating agreement allows for it. a qualified business law attorney can assist you with drafting your operating agreement or with fine-tuning your existing operating agreement if it has become too complex or complicated.
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