When starting a new business, one of the most important steps is creating an operating agreement. This document outlines how the business will operate and the roles and responsibilities of each member or owner.
However, many new business owners may be unsure of who they need to file their operating agreement with. The answer to this question varies depending on the type of business entity and regulations in your state.
If you are a sole proprietor, you do not need to file an operating agreement with any government agency. Sole proprietorships are not considered separate legal entities, and the owner is personally responsible for all business obligations and liabilities.
For partnerships, it is recommended but not required to file your operating agreement with your state`s Secretary of State. This helps ensure that all partners are aware of and agree to the terms outlined in the agreement. Additionally, filing your operating agreement can provide legal protection for your business in case of a dispute among partners.
Limited Liability Companies (LLCs) are required to file their operating agreements with the state where the business is registered. This ensures that the state has a record of the LLC`s structure, management, and ownership. Additionally, filing your operating agreement can help protect your personal assets from business liabilities and disputes.
Corporations are also required to file their operating agreement, known as bylaws, with their state`s Secretary of State. Bylaws outline the corporation`s structure, management, and operating procedures. They also provide legal protection for the corporation by demonstrating that it is operating in compliance with state regulations.
In summary, the filing requirements for operating agreements vary depending on the type of business entity you have. While sole proprietors do not need to file their operating agreements, partnerships, LLCs, and corporations are generally required to do so. Filing your operating agreement can provide legal protection for your business and ensure that all owners are aware of and agree to the terms outlined in the agreement.