LLC Operating Agreement in Ohio—How To Get It in Three Quick Steps
If you're thinking of starting a limited liability company (LLC) in Ohio, drafting a valid legal document that will outline all the financial and functional aspects is a must.
If you are wondering what the best way to draft the LLC operating agreement in Ohio is, you're in the right place.
, and let us draft this contract on your behalf!
What Is an Ohio LLC Operating Agreement?
The LLC operating agreement is a legally binding contract used by any Limited Liability Company (LLC) to outline the procedures, policies, and other important aspects of a company/business.
The contract should cover the rules, provisions, regulations, and obligations of the parties involved.
Ohio is not one of the states in which filing an operating agreement is mandatory, but drafting one can still be beneficial for your company (this applies to both single-member and multi-member LLCs).
Can I Write an Ohio LLC Operating Agreement on My Own?
Writing any legal document by yourself will take a lot of time and effort. You have to make sure to:
- Include every important section
- Use proper legal terms
- Make the contract specific to your LLC
Relying on templates you find online isn’t a good idea since they are way too broad. Every LLC is different, so there’s no one-size-fits-all template. The templates can also contain inaccurate information.
If you insist on writing an LLC operating agreement on your own by looking at online samples, make sure that those dodgy templates include the following clauses:
- Ownership percentage—Each party should have an ownership percentage assigned to them. This is typically done based on the amount the members invested, but the members can choose a different method
- Roles and responsibilities—Assigning the specific duties and being clear on them will help the parties understand what is expected from them and what authority they should respect
- Decision-making—Establishing a decision-maker is crucial in any business arrangement. Common options are:
- A unanimous vote of all members
- Appoint one person to do all the decision-making
- Management structure—The company can be:
- Member-managed, in which the owners will run the company
- Manager-managed, in which one person gets appointed to perform this task
- Profit distribution—Profit is usually distributed based on the ownership percentage, but nothing’s set in stone. Members can choose a different approach and should specify it in this section
- Rules on exiting the contract early—The contract has to elaborate on what happens when a member wants to exit the agreement early, as well as what happens to their ownership interests
- Closing the business—The termination clause should specify what will happen if the LLC closes, i.e., what the steps to dissolving the LLC are and how the assets will be divided
Is an Ohio LLC Operating Agreement Beneficial?
You may not be sure if an LLC operating document is the right choice for your business. It seems overly complicated to make, and you are not obliged to have one. Still, it’s worth considering creating one, and here is why:
- You can avoid the state-specific rules and make your own
- Your LLC's limited liability status will be preserved
Avoiding Default Rules Imposed by the State
You do not have to create an LLC operating agreement in Ohio, but that doesn’t mean your company can run without any rules or regulations.
Without this agreement, you’re obliged to stick to the default rules of the state, and those might be quite different from what you had in mind for your company. The main advantage of drafting an LLC operating agreement is that you get full control over how your LLC works.
Protecting the Limited Liability Status of Your LLC
The contract protects all LLC members from personal liability for companies' debts. If, for example, LLC cannot pay a lender or a supplier, that creditor cannot legally come after an LLC member. Only the LLC property is used to pay off business debts
If you do decide to go with this agreement, you might be thinking of hiring a lawyer. The delicate nature of this legal document requires legal expertise.
Still, you can get a professionally written LCC operating agreement without spending a ton of money on expensive legal help.
DoNotPay Drafts Your Ohio LLC Operating Agreement in Seconds
Skip the unnecessary hassle and use DoNotPay to draft your contract instantly! Our app collects the info you provide and uses it to generate your LLC operating agreement in the blink of an eye!
Complete the following instructions and get your agreement in a snap:
- Enter the LLC Operating Agreement in the search field
- Answer a few short questions about you and your agreement
Our app will create your agreement right away! Print or download it, get all the members to sign it, and you’re good to go!
An LLC operating agreement isn’t the only contract our app makes in your stead! DoNotPay will also draw up the following agreements for you:
|Business Contracts||Other Contracts|
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