You and a business associate have decided to go into business together and you decided
you want to form a Limited Liability Company or an LLC and you've heard that you need what
is called an operating agreement. Hello, I'm Robert Todd and I'm here to answer the question
how to create an operating agreement. Well first of all, this is sometimes a complex
and comprehensive legal instrument and you should give serious consideration to getting
some legal advice or at least a legal consultation before you set about to put together an operating
agreement. This operating agreement is going to determine the relative responsibilities
and liabilities of the participants to this agreement. Its what controls the limited liability
status which is one of the reasons you're choosing the Limited Liability Company stature
to begin with. So you want to make sure its being done correctly. If its not done correctly,
the state statutes that govern Limited Liability Companies in your state will govern by default
what happens. So you want to make sure this operating agreement reflects the agreements
of you and your business associate. I'm Robert Todd and thank you for watching.