Operating Agreement a necessity?

[tuffbrk]

What is the name of your state (only U.S. law)? NJ

Good morning. I am about to complete forms to create a LLC for a Non-Profit enterprise. I was reading up on the process before beginning, and saw a brief mention of an Operating Agreement. Public Legal Forms.com provides an example and then adds in an offer for $10 for a download of their version that includes, in addition to the operating agreement, a packet of professionally drafted resolutions, notices, and minutes templates including: Appointment of Accountants, Appointment of Officers, Approval of Operating Agreement, Designation or Substitution of Agent for Service of Process, on and on and on. The primary purpose of forming the LLC is to secure the name and establish officers.

Can anyone offer an opinion on the usefulness of all of these templates? In reading the Operating Agreement, it seems to outline the various functions of all involved so that seems to be a valuable document to have. I just don't know if one is necessary?

Advice would be welcomed.

Thank you in advance!

 

[LdiJ]

What is the name of your state (only U.S. law)? NJ

Good morning. I am about to complete forms to create a LLC for a Non-Profit enterprise. I was reading up on the process before beginning, and saw a brief mention of an Operating Agreement. Public Legal Forms.com provides an example and then adds in an offer for $10 for a download of their version that includes, in addition to the operating agreement, a packet of professionally drafted resolutions, notices, and minutes templates including: Appointment of Accountants, Appointment of Officers, Approval of Operating Agreement, Designation or Substitution of Agent for Service of Process, on and on and on. The primary purpose of forming the LLC is to secure the name and establish officers.

Can anyone offer an opinion on the usefulness of all of these templates? In reading the Operating Agreement, it seems to outline the various functions of all involved so that seems to be a valuable document to have. I just don't know if one is necessary?

Advice would be welcomed.

Thank you in advance!

For a non-profit enterprise an operating agreement is a definite requirement.

 

[tuffbrk]

For a non-profit enterprise an operating agreement is a definite requirement.

Thank you LdiJ. I'm thinking perhaps I should just pay the fee and download the entire packet. Unless you are aware of another product that you have come across that you would recommend?

 

[LdiJ]

Thank you LdiJ. I'm thinking perhaps I should just pay the fee and download the entire packet. Unless you are aware of another product that you have come across that you would recommend?

That is actually a pretty inexpensive fee. I doubt you could do better elsewhere.

 

[tuffbrk]

That is actually a pretty inexpensive fee. I doubt you could do better elsewhere.

I agree. The lack of expense actually made me uncomfortable which is why I was wondering if I should use a different resource!

Thanks again for your advice. I appreciate it!

 

[Silverplum]

I have nothing, but want to offer you my best wishes for your venture!

 

[tuffbrk]

I have nothing, but want to offer you my best wishes for your venture!

That's so thoughtful, Silverplum. I'm now sitting here with a smile on my face! Thanks so much!

 

[LdiJ]

I agree. The lack of expense actually made me uncomfortable which is why I was wondering if I should use a different resource!

Thanks again for your advice. I appreciate it!

I don't think its necessary to look elsewhere. If you are truly worried you could have an attorney draft one, but I suspect that it will give you decent information. Having an attorney draft one is usually more expensive than needed.

 

[FlyingRon]

There are specific things a non-profit must do and not do to maintain that status so a proper operating agreement is key.

If by "non-profit" you're hoping for 501(c) status, you might want to get professional help. An LLC can't, except in extremely limited circumstances, get 501(c) status.
You'll really need to form a non-profit corporation (and even then you'll need to craft the articles of incorporation and bylaws to satisfy the IRS. We thought we did a pretty good job on ours, but we still had to fix things when we got the actual IRS status).