Even if you have been best friends with your business partner since kindergarten, you still absolutely 100% need an operating agreement in place for your LLC.

This is one of the most critical steps in forming an LLC, and it’s a nonstarter. 

Remember, if it’s not in writing, it doesn’t exist. And if it is in writing, it’s non-negotiable. Your agreements need to be clear and reasonable so that everyone involved can follow them without any heartache or resentment. Agreements like these determine how the financial responsibilities are managed, how your LLC is structured, and, ultimately, when things get tough, who makes those hard-to-swallow changes. 

There’s some value in being flexible, of course, but if you don’t follow your agreements, things spiral out of control faster than you can blink. Even if your partners don’t mind at first, it becomes harder to enforce terms of the agreement later when someone does mind. The same goes for LLCs that don’t have partners: you want to have a clear plan for what happens inside your business so you don’t waffle when the time comes.