Making a business in Florida – Part 5 of 9
Not every LLC needs an operating agreement or requires one from its inception, but the decision as to whether the LLC really needs one and when it should have one should be made by the owner or owners after understanding the issues that impact the decision.
Without an operating agreement, the LLC is bound by the Revised LLC Act, Chapter 605, Florida Statutes. Therefore, the company gets what the Legislature decided in those Statutes that the business should have. Sometimes, this one-size fits all approach is not appropriate for or tailored to the needs of the business.
Operating agreements need not be long or expensive to create. When I have seen these documents approach 90 pages and contain scores of definitions I have though to myself there was no real purpose to including pages and pages of definitions that are already in the Statutes unless they are significantly different. Operating agreements are often adopted by a company in the early part of its life when money is tight. Therefore, operating agreements must be cost effective and easy to use and understand or they become a financial burden to the business and become useless to the owners who have to hire another lawyer just to interpret it.
To increase the efficiency of the process of developing an operating agreement to fit any business and to reduce the costs involved, David Steinfeld created a proprietary and easy to navigate questionnaire. This questionnaire incorporates the provisions of the Revised LLC Act that can be changed or modified. This allows Mr. Steinfeld to obtain salient and critical information from the business owner in an easy fashion without a lengthy and direct interaction. That effectively eliminates one meeting with the lawyer and saves hundreds of dollars for the business.
After receiving the completed questionnaire, Mr. Steinfeld is able to create a draft operating agreement to review with the business owner. As the draft is discussed, Mr. Steinfeld is able to make changes that are necessary resulting in the business having a final operating agreement at the end of the discussion that comports with their goals and intent. This keeps the process efficient, easy, and cost effective.
Because many LLCs undertake an operating agreement early in their existence, the cost of so doing is normally very important. The fledgling business often has only so much money with which to work at that point. By making the process of creating the operating agreement faster and cheaper for the business, the Law Office of David Steinfeld provides a value and benefit to the business that promotes its future success and avoids costly disputes in its future.
The Palm Beach Business Lawyer Blog
Board Certified expert in Florida business law, David Steinfeld has almost 25 years legal experience.