Legal Question in Business Law in New Jersey

Re: Llc

The LLC is valid without a signed Operating Agreement. In essence you are allowing the State Legislature dictate the terms of the agreement. You would be far wiser to have a tax and business attorney prepare an Operating Agreement.

I hope this helps!

Ron Cappuccio

http://www.BusinessEsq.com

Re: Llc

Yes, but it makes it difficult to prove some things such as each member's share of earnings. If there is no operating agreement, the statute has a default structure and operating rules. Unfortunately, the statute is modeled more after corporation law than the partnership law that the members usually intend.

So, the lesson is that a multi-member LLC should always have a well-drafted operating agreement that captures the unique features of what the members intend. But, if there is no operating agreement, there is still an LLC. It just will be much more difficult and expensive to run if the members disagree or or to get it broken up if that happens.

See also: http://info.corbettlaw.net/lawguru.htm