Can anyone share operating agreement templates ?
December 09, 2020
by a searcher from Harvard University - Harvard Business School in San Jose, CA, USA
December 09, 2020
by a searcher from Harvard University - Harvard Business School in San Jose, CA, USA
from University of Minnesota in Minneapolis, MN, USA
My primary advice is to make sure that your OA addresses the 3 most common areas where issue arise within closely-held businesses: 1) Money (who gets paid what and how is that decided? What happens if we need more capital?), 2) Power (who makes the decisions generally? How are votes allocated? When do we need majority/super-majority/unanimous consent on a business decision?) and 3) Succession Plans (what happens if an owner dies/declares bankruptcy/doesn't want to be an owner any more? How will the Company retain ownership with adequate flexibility to maintain daily operations of the Company? What if an owner/employee gets fired?).
In my limited experience, smaller companies tend to over-think the Operating Agreement, and larger companies tend to under-think it. I think it's a good idea to make sure that your primary concerns are addressed in the document in a manner that is clear and understood by all the stakeholders.
And, as ^redacted noted, make sure to loop your tax advisor in on the financial aspects to say on the right side of our good friends at the IRS.
from Carleton College in Leesburg, VA, USA