13 ms·
That's the point of the operating agreement. It says what does and does not exist. To quote from Nolo.com (http://www.nolo.com/legal-encyclopedia/llc-operating
by rosenjon 16y ago
That's the point of the operating agreement. It says what does and does not exist.
To quote from Nolo.com (http://www.nolo.com/legal-encyclopedia/llc-operating-agreement-30232.html http://www.nolo.com/legal-encyclopedia/llc-operating-agreeme...) :
"The main reason to make an operating agreement is to help ensure that courts will respect your limited personal liability. This is particularly key in a one-person LLC where, without the formality of an agreement, the LLC will look a lot like a sole proprietorship. Having a formal written operating agreement will lend credibility to your LLC's separate existence."
The operating agreement usually specifies that the member can operate all aspects of the business, including hiring, firing, etc. So authority flows from the member in terms of other people's titles, and it is not necessary to specify lower level employee's title in the operating agreement. It is, however, necessary to specify the relationship of each owner in an LLC to the business if they will be transacting business on behalf of the company. This ensures that the veil between personal and company property remains intact.