LLC Operating Agreements in Colorado | Boulder Small Business Lawyer
As a Boulder business attorney James Newell routinely draft operating agreements for limited liability companies (LLCs). Operating agreement, which are also known as LLC agreements, are contracts that govern the relationship between members (owners) and managers (officers) of LLCs. Written operating agreements help clarify the parties’ roles, compel forethought, reduce the likelihood of selective memory and enhance enforceability.
In Colorado, LLCs may be multi-member or single-member and they may be manager-managed or member-managed. Operating agreements are routinely enforced as written in Colorado courts, even when their terms could be described as unusual or even draconian to one or more of the parties. Colorado courts have stated that operating agreements are “creatures of contract” and that the parties are expected to “scriven with precision” (put another way: to draft carefully). The parties should be well acquainted with the terms of an operating agreement before signing it, lest they get themselves into a situation that is undesirable and difficult or impossible to get out of.
If you are an entrepreneur who is starting a new business in Colorado and are looking for a Boulder Business Attorney with a results oriented approach tailored to your matter’s specific needs, contact Newell Law. We have the experience and knowledge to ensure your operating agreement is drafted with precision.