What is an operating agreement?
An operating agreement is a legal document that outlines the rights and responsibilities of business partners in a Florida business formation. This agreement sets out the rules that each partner must follow in order to ensure the business is run in a successful and organized manner. Depending on the type of business formed, the operating agreement may include provisions such as: how decisions are made, who is allowed to make decisions, what roles each partner has, how profits and losses will be divided, and how and when a partner may be removed or replaced. This agreement can also dictate how conflicts are handled and how the partnership can be dissolved. An operating agreement is a critical document in ensuring that all partners in a business are aware of the rules and expectations for the business.
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