Does anyone have experience in drafting their own Operating Agreement?

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April 09, 2020

by a searcher from London Business School in Chicago, IL, USA

I am working to form my LLC and would appreciate feedback on:
- State of LLC incorporation? I am based in Chicago but was thinking to incorporate in Delaware
- Best source for Operating Agreements. I found a template on the Stanford Primer- should I consult a Lawyer or can draft my own?


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Reply by a searcher
from St. Francis Xavier University in Toronto, ON, Canada
Massimo, I would recommend that you contact a lawyer who has a history or working with traditional search funds to help you with your fund formation. They will have boilerplate agreement you will start with. If you are raising traditional search capital, traditional search fund investors will expect to see the typical LLC agreement. Your operating budget should include start up costs, including funding to pay for your fund formation / legal fees. Huntstone Capital is a Delaware LLC, like many. M
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Reply by a searcher
from York University in Toronto, ON, Canada
1. Consider Delaware for favorable laws, but consult a lawyer if you mainly operate in Chicago. 2. Use a template for your Operating Agreement, customize it, and ensure it complies with state laws. A lawyer can ensure it's legally solid. 3. If you're traditionally funded, follow investors' preferences. If self-funded, learn about and negotiate provisions to match your goals. 4. Drafting your agreement can be a valuable skill. Balance self-drafting with legal advice wisely.
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