Drafting LLC operating agreement topic of boot camp conference

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On behalf of Daniel Watkins of Watkins Firm, A Professional Corporation posted on Wednesday, October 10, 2012.

The availability of the Internet has changed the way businesses operate. Much of the day-to-day operations are made easier through this technology whether it is the ease in which orders can be made, money can be transferred or any other endless tasks. As useful as the Internet is, it can be dangerous as well for the formation of a new business. For a small fee individuals can draft a business document online in a matter of minutes; a document like an operating agreement for an LLC. But how thorough are these quick-draft documents?

The drafting of an operating agreement is vitally important for any new business. It isn’t just drafting an ironclad agreement that is important, but it is also choosing terms and protections that are appropriate for the business being formed.

In November, a boot camp conference is being presented by LegaLees Corporation, and the topic of the day is LLC operating agreements. Specifically, the focus will be placed on clarifying language in agreements that will cover asset protection for members and the role that “charging order protection” plays. Charging order protection is something that was created to protect the LLC from the personal liabilities of one or more of its members. What if the LLC is a “single member LLC”?

Ask anyone who deals with business disputes and they will most likely tell you that litigation is most often the result of poorly drafted documents or agreements that do not adequately protect the interests of a business. The host of this specific conference said that he often has individuals approach him with an operating agreement that was drafted online. According to the host, the agreements are often too short to adequately cover every issue that needs to be addressed.

Online documents such as these are created to cover a mass number of businesses. While they may provide general protection, they are not tailored to a specific business.

Source: Seattle PI, “LLC Operating Agreement Roll in Charging Order Protection Will Be Discussed At AZREIA Boot Camp in November,” Oct. 9, 2012