The State of Georgia does not require partnerships or limited liability companies (LLCs) to file operating agreements with the Corporations Division of the Secretary of State. However, it is in the company owners’ best interests to negotiate, draft, and sign such an agreement for their own benefit. Owners should always consult with a business lawyer in Atlanta about putting this agreement in place.
Terms of the Agreement
This agreement sets the guidelines for how multiple owners will work together to run the business. Some common terms of an operating address the following:
- Contribution of each owner, whether financial or otherwise
- Liabilities of each owner and whether they are protected from personal liability for company debts
- How to bring in new owners
- Management duties and guidelines for each owner
- The fiduciary duty of each owner
- When and how an owner can be terminated
- Terms for the dissolution of the company
- Dispute resolution methods
You want these terms tailored to your specific business, and this agreement should always be drafted by an experienced business attorney.
Conflict Resolution
One of the most important benefits of an operating agreement is that it helps with efficient conflict resolution. When owners disagree on a matter, they should always first look to the operating agreement for the answer to the problem. If the dispute persists, the operating agreement should dictate how to resolve the dispute, including by mediation. This can help prevent litigation between owners over issues that should be resolvable out of court. An agreement can often save your company time and money.
Contact a Business Lawyer in Atlanta Today
No matter what type of company you own, Battleson Law, LLC, is ready to help draft and review important contracts, including operating agreements. Our Atlanta business attorney can help set your company up for success, so please contact us online or call 404.382.8149 to learn more.