Does my Alabama LLC need an LLC Agreement?
An LLC agreement (previously known as an “operating agreement”) outlines the LLC’s ownership and management structure.
Under Alabama law, every company MUST have an LLC agreement. However, the agreement does not necessarily have to be written down – it can be an oral or implied agreement.
But should your LLC agreement be written anyway?
If you have multiple members in your LLC it is crucial that you have a written LLC agreement. Otherwise, there will be no way to know what the terms of the agreement really are. You may have discussed them at length with the other members, but if a dispute arises how can you be sure that everyone will remember your discussions and your oral agreement the same way? A well-written LLC agreement can save you and the other LLC members a lot of trouble and expense when disputes arise.
There are also compelling reasons to have an LLC agreement even if you are the only member of your LLC. For example, you can use a written LLC agreement to plan for the business’s management in your absence.
Do-it-yourself LLC agreements can be found on the internet, but they may not be up to date, may contain errors, may include provisions that do not apply to your business, or you may complete them incorrectly. An experienced attorney can help protect you and your business by preparing an LLC agreement tailored to your needs.
Call Lewis, Lewis & Falkner today to see how we can help you. Your initial consultation is always free.