Types of Operating Agreements
A single-member LLC Operating Agreement is signed by the only member or owner of the company. Despite not being a mandatory form, this operating agreement can help the person establish clear policies and operational procedures. Moreover, it saves the owner and his personal belongings from being taken in case of the LLC’s failure. Some serious losses can happen without the document, so it is better to avoid them by signing a single-member LLC Operating Agreement. There are also some benefits for tax payments for the companies with the Operating Agreement.
A multi-member LLC Operating Agreement is a document signed and agreed upon by all the company members. The agreement consists of policies and elements of the company’s everyday working process. It is crucial for all the members to clearly understand and agree on the information stated in the document. Otherwise, a member can use an attorney’s services. The benefits available for multi-member LLCs are absolutely the same as for single-member LLCs. The only difference is the list of names indicated in the form.
Requirements and Laws in Georgia
The Georgia LLC Operating Agreement is not an obligatory form. The Official Code of Georgia Annotated (O.C.G.A) states that an Operating Agreement might provide rights and powers to any person, even if they are not a part of the agreement.
Depending on the number of company members, either one or multiple persons must be indicated in the agreement form. Those who sign the form agree with its content and take responsibility for following the instructions stated in the form.
All the responsibilities laid on an LLC member are performed towards other members or the company as a whole. In case of any court actions caused by company debts and obligations, failures of other members, executive staff, or registered agents, the member acts according to the Code and other laws of the state.