Legal Question in Business Law in California

I find nothing in California statutes or practice manuals covering LLCs that suggests there is a requirement for, or an advantage to be gained from, special language in an LLC operating agreement ("OA") when it is to be minority owned.

You might want to contact an office of the SBA (Small Business Administration) and ask whether there is anything you should put in your OA that is necessary or helpful in qualifying for programs they run or know about, and also ask about MESBICs (Minority Enterprise Small Business Investment Companies).

Remember that the members can always amend the OA if that becomes advantageous.

There is no requirement to add information in your operating agreement regarding the minority owned or women owned status of your LLC. You can alway add a paragraph to your operating agreement about that information. If you are applying for MBE or WBE status all they want is proof that your company is at least 51% minority or women owned. The proof can usually be satisfied by declaration on the certification paperwork. I hope this helps. Congratulations on your new venture. Feel free to contact me if you have any additional questions.

Congrats on your new business and best of luck. I agree, there is no requirement that I'm aware of for this type of information in your operating agreement, but you can add it if you want to. Also feel free to consult with an attorney in your area.

Kevin B. Murphy, B.S., M.B.A., J.D. - Mr. Franchise

Franchise Attorney