If you own a small business or are in the process of launching one, you know that the behind-the-scenes legal work can be as important as the product or service you’re offering. Operating agreements are integral to running a successful business, but they can be tricky to get right. With its strong legal framework and familiarity with local regulations, Chicago is the perfect distance to find the counsel and expertise you need to draft an effective operating agreement.

Whether you’re just starting out and aren’t familiar with the ins and outs of operating agreements, or you’re an experienced veteran of the business world, having an advisor to guide you through the legal maze is key to the success of your business. Experienced lawyers in Chicago have the experience and expertise to provide you with tailored advice designed to suit your needs.

An operating agreement is a binding legal contract between two or more parties that sets out the terms and conditions of how an organization is going to operate, and how any disputes are going to be resolved. Depending on the type of organization, the agreement may also specify operational roles and responsibilities, outline potential investments, and establish procedures for hiring, firing, or terminating employees. The scope and complexity of an operating agreement will depend on the type of business and the number of stakeholders it has.

Typically, a corporation’s operating agreement is set out in its articles of incorporation, which are the legal documents that give the entity its legal personality. Other types of organizations, such as partnerships and limited liability companies, will usually create an operating agreement to define the roles and responsibilities of each partner, or of the LLC’s managers, and to set out the rules for each partner’s conduct and liability.

Whether you’re a sole proprietor or you’ve got dozens of employees, drafting an effective operating agreement is essential to protect your business and its assets. Having an attorney experienced with the specific laws in Chicago will help ensure that your operating agreement is tailored to your business’s exact needs, and that your agreement will protect your interests in the event of a dispute.

When drafting an operating agreement, it’s important to consider all the different stakeholders involved. Factors such as the amount of equity each member has, the division of managerial duties, and the protocols for resolving disputes should all be accounted for. Each stakeholder should also understand their liability and responsibilities, and the agreement should be written in language that everyone involved can understand.

An operating agreement should also specify the principal’s rights over the company’s property, how potential profits and losses will be ascribed, and the protocol for bringing in new partners if the organization chooses to do so. Furthermore, it’s important to account for contingencies, such as what should happen if one of the partners dies or if the organization is dissolved.

The corporate law lawyers in Chicago are some of the most experienced and knowledgeable in the business, and the city is an ideal destination for anyone looking for advice regarding operating agreements. Having the right operating agreement in place can be the difference between bankruptcy court and success, so it’s important to secure the services of a professional.

For businesses in the Chicago area, UpCounsel is an excellent resource for finding the legal expertise and advice you need. With the largest network of attorneys in the nation, they guarantee access to top quality lawyers with deep experience in corporate law. Whether you need a one-time consult to help you script an effective agreement or an entire legal team to assist with the setup of your company, UpCounsel has the lawyers you need. From small businesses to the Fortune 1000, companies trust UpCounsel to deliver high quality legal services on demand. Their profiles of online attorneys are public, so you can shop around and read reviews to pick the perfect lawyer for your needs.

At the end of the day, having an operating agreement in place is an important step to protect your business interests and can make the difference between success and failure for any organization. Finding the right attorney for your needs is simpler than ever, with the wide range of experienced lawyers in the Chicago area.


Operating Agreement,

Business Law,

Corporate Law