Run Your LLC on Your Own Terms
The Operating Agreement governs the operation and management of the LLC. It describes the business and economic arrangement of the members.  LLCs need to document important and material issues that could impact the members, such as profit-sharing and decision-making rules as well as their procedures for handling the departure/addition of members, and the dissolution/termination of the LLC. Without an Operating Agreement, the owners will be poorly-equipped to settle misunderstandings over the operations, finances, and management of the LLC. In addition, without an Operating Agreement, the LLC will be subject to the default operating rules created by state law.

The LLC Operating Agreement generally specifies, among other things, the business name, the official business address, the identities of the members, the way in which cash is distributed to the members, the way in which profits and losses are to be divided between the members, and how the company will be managed. The Operating Agreement should also reflect each member’s financial contributions to the LLC and the member’s ownership interests.

Even Single Owner Companies Need an Operating Agreement
Even though the LLC Operating Agreement is not required to be filed with any state agency, it is unwise to operate an LLC without an LLC Operating Agreement, even if you’re the sole owner of your LLC. It is extremely important that you create an Operating Agreement to separate yourself as an individual from your LLC, even if you are the sole owner of your LLC. Without the formality of an Operating Agreement, the LLC can closely resemble a sole proprietorship, which does not limit your personal liability for business debts of the LLC. Without an LLC Operating Agreement, the basic operation of the LLC would then be governed by state law, which may not be advantageous to the LLC, it members, or the business it conducts.

LLC Operating Agreements on the Web
Entrepreneurs and start-ups today look to the internet for cost effective methods of getting legal documents to govern their business practices and start their new ventures.   www.MyLLCAgreement.com is one example of a legal self help website that specializes in customizable LLC Operating agreements that are law firm quality without the law firm cost.  You won’t have to worry about what provisions to include in your agreement or whether it will comply with state law.  Simply complete the Customization Questionnaire and in a matter of minutes you will have a well drafted customized LLC Operating Agreement tailored to the needs of your business.

Your LLC Operating Agreement – Helpful Tips
The LLC Operating Agreement does not have to be filed with any state agency.  All states will enforce valid Operating Agreements entered into among LLC members. The Operating Agreement will only be enforced against the persons who are parties to the agreement. Therefore, it is extremely important that all members of an LLC sign the Operating Agreement.
1    Make sure the LLC operating agreement is signed by all the members.  The operating agreement will only be enforced against the people who have signed it.
2    Make sure each member has a signed copy of the LLC operating agreement.
3    Try keeping an electronic copy of your LLC agreement so it is easily accessible.
4    Make sure to “Amend” your LLC operating agreement when making a change to your business arrangement, such as, adding a member, changing the manager, making additional capital contributions to the LLC.

About the Author:
Adam Bergman is the president and creator of MyLLCAgreement.com, the market’s leading online legal website that offers customized LLC Operating Agreements.  Mr. Bergman has worked as a corporate and tax attorney at White & Case LLP, Dewey LeBoeuf LLP, and Thelen LLP, three of the most prominent corporate law firms in the United States where he advised thousands of entrepreneurs and business owners on a wide range of corporate and tax issues involving limited liability companies for the past seven years. Adam Bergman is recognized as a leading partnership tax expert and has lectured attorneys on the taxation of LLCs.

Below are a few strategies that small-business owners can employ as they aim to keep employees motivated and businesses profitable while navigating the tough economic climate.

Identify, develop, and retain your best people
Leaders who are performing under pressure will know which employees are their best assets and essential to survival. Business owners must support them to manage stress and maintain self-belief in order to ensure their engagement with the company’s goals. These employees will also be critical to growing a business once the recession is over.

Avoid staff lay-offs by focusing on the future when making decisions
Real leaders will continue investing in people when times are tough because that’s precisely when competitors can steal a march and gain advantage. Small-business owners will inevitably be very focused on the short-term, but those who keep planning for the future as well will come out of tough times stronger than others.

Communicate openly and honestly with your people
High performing leaders will disclose something of themselves to their employees. They will be honest about the organization’s challenges and be open to challenge and questions from their teams. A strong and meaningful vision that employees can connect with emotionally will be key to survival strategies.

Create a ‘mentally tough’ environment
Real leaders develop mental toughness by staying in control under stress, maintaining self-belief, and focusing on the things that really matter. Mentally tough leaders will be resilient to the current challenges and create conditions where their employees can thrive under pressure.

Small businesses might feel especially disheartened by the current volatility and anxiety in the business world, as they see their company faced with unfamiliar challenges.  However, small business owners can turn these economic tough times into a period of sustainability and even growth for their companies if they can build their and their employees’ mental toughness.

Use tough times as an opportunity to become better leaders
In tough economic environments, too many leaders focus on the constraints on performance rather than the supports and opportunities available. By focusing on the controllables, real leaders will be able to sustain performance and develop resilient teams around them.

Overall, small-business owners must continue to walk the balance beam. They must ensure that clients are supported, and employees are motivated so that their businesses can survive the current economic challenges.

Graham Jones is Co-founder and Director of Lane4, a performance development consultancy working in the fields of organizational change, leadership development, and executive coaching and a co-author of “Developing Mental Toughness; Gold Medal Strategies for Transforming Your Business Performance”. Lane4 incorporates sports psychology to challenge staid thinking, while positively influencing business mindset leading to increased performance.