In this article, we will be discussing the importance of the Operating Agreement for LLCs in Oregon and points that must be added in the document.
At the end of the post, we’ll share a sample operating agreement, which you can modify and suit it according to your business dynamics.
Operating Agreement – What should it Cover
As per Oregon state laws (OR Rev Stat § 63.057) it’s not mandatory for LLCs to draft an operating agreement. But just because it’s not mandated to have an agreement in place, does not mean that not drafting one is a good idea. Registering an LLC does not entitle the business owner(s) with limited liability. It must be earned.
A properly executed operating agreement adds credibility to the LLC as a separate entity. And in an event of any legal case against the business, it would act as a shield.
The primary objective of an operating agreement are:
- To specify ownership percentage and rights/duties of each member.
- Separate member(s) personal asset from the business.
- To allow the provision of succession and incapacity planning.
This document is for internal purpose only and should be kept at principal office address or any location mutually agreed by the member(s).
On this page, we’ve shared a generic operating agreement template which can be used by LLCs in Oregon.
Download Oregon LLC Operating Agreement (PDF/DOCX)
Based on the type of your LLC, download the relevant document.
Disclaimer: The document is shared for reference purpose only. We disclaim all liability and responsibility arising from any reliance placed on the information shared. We encourage you to consult a professional business attorney to get a professional agreement made.
Last Updated: 02/01/2019