Krista Fabregas is a seasoned eCommerce and online content pro sharing more than 20 years of hands-on know-how with those looking to launch and grow tech-forward businesses. Her expertise includes eCommerce startups and growth, SMB operations and log.
Krista Fabregas Forbes Advisor StaffKrista Fabregas is a seasoned eCommerce and online content pro sharing more than 20 years of hands-on know-how with those looking to launch and grow tech-forward businesses. Her expertise includes eCommerce startups and growth, SMB operations and log.
Written By Krista Fabregas Forbes Advisor StaffKrista Fabregas is a seasoned eCommerce and online content pro sharing more than 20 years of hands-on know-how with those looking to launch and grow tech-forward businesses. Her expertise includes eCommerce startups and growth, SMB operations and log.
Krista Fabregas Forbes Advisor StaffKrista Fabregas is a seasoned eCommerce and online content pro sharing more than 20 years of hands-on know-how with those looking to launch and grow tech-forward businesses. Her expertise includes eCommerce startups and growth, SMB operations and log.
Forbes Advisor Staff Kelly Main Staff ReviewerKelly Main is a Marketing Editor and Writer specializing in digital marketing, online advertising and web design and development. Before joining the team, she was a Content Producer at Fit Small Business where she served as an editor and strategist c.
Kelly Main Staff ReviewerKelly Main is a Marketing Editor and Writer specializing in digital marketing, online advertising and web design and development. Before joining the team, she was a Content Producer at Fit Small Business where she served as an editor and strategist c.
Kelly Main Staff ReviewerKelly Main is a Marketing Editor and Writer specializing in digital marketing, online advertising and web design and development. Before joining the team, she was a Content Producer at Fit Small Business where she served as an editor and strategist c.
Kelly Main Staff ReviewerKelly Main is a Marketing Editor and Writer specializing in digital marketing, online advertising and web design and development. Before joining the team, she was a Content Producer at Fit Small Business where she served as an editor and strategist c.
Updated: Feb 12, 2024, 11:03pm
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In Texas, an operating agreement isn’t required to form a limited liability company (LLC). However, business attorneys, accountants and advisors agree that no LLC should form without one. An LLC operating agreement is a legally binding document that defines critical aspects of the LLC. Operating agreements list LLC members and their ownership shares, roles and responsibilities and detail buy-in and sell-out terms, management structure, exit strategies and more. Operating agreements also help LLCs secure bank accounts, financing, investors and trade credit.
An LLC operating agreement is a legal document compiled by the LLC members to detail key elements of their LLC business. Filing an LLC operating agreement isn’t a legal requirement in Texas. Despite this, business attorneys, advisors and accountants highly recommend crafting one to set expectations for the members, protect the LLC’s interests and give lenders and potential investors an understanding of the business.
You can create a legally binding LLC operating agreement for free. You can compile the agreement yourself or use a ready-made template to ensure you include the necessary information. As long as you cover the essential details and all members show agreement by signing the document, it’s legally binding.
However, it’s a good idea to use an attorney if certain members are making significant investments in the LLC or if the ownership, roles and responsibilities are complex. Ensuring these details are documented at formation helps protect the LLC and its members from potential lawsuits. Attorney costs vary but plan to spend at least $500 for a basic LLC operating agreement in most urban areas.
There’s no standard Texas LLC operating agreement form, but most include the following points.
Whether you compile the document yourself, use a template or hire an attorney, once each member signs the document, your LLC operating agreement is legally binding.
