Why Every Small Business Needs an Operating Agreement

At Schuitmaker Moraitis Law, we often see small business owners overlook one critical document—the operating agreement. Even for single-member LLCs, this agreement is essential. It defines ownership percentages, decision-making processes, and what happens if a member leaves or the business dissolves. Without it, state default laws may dictate how disputes are handled, which might not align with your intentions. A well-drafted operating agreement protects your business, ensures clarity among partners, and strengthens your LLC’s liability protection. Don’t wait until an issue arises—having a solid legal foundation from the start can prevent costly disputes down the road.