Operating Agreement Musts

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March 21, 2024

by a searcher in Meridian, ID, USA

I'm currently drafting my first partner operating agreement. What are some of your favorite snippets or verbiage you've picked up along the way that you include in your operating agreements? Anything around distribution of profits? Good/Bad Leave Clauses?

One specific component of interest: the ability to regularly (annually?) review ownership % and make adjustments to reflect active participation in the business.

Thank you!

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commentor profile
Reply by a searcher
from University of Tulsa in Kansas City, MO, USA
I know this post is a few months old, but Stanford Business has a helpful (and free) primer that includes useful exhibits. All very generic, but (if you're like me), at least you'll know what the heck this legal jargon is even referring to.

https://swap.stanford.edu/was/###-###-#### /http://gsb.stanford.edu/experience/about/centers-institutes/ces/research/search-funds/primer

If you have trouble accessing through the link, send me a message.

EDIT: It's also specifically geared to Traditional, but again, helpful with some of the finance and legal terminology.
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Reply by an intermediary
from Winston in Piscataway, NJ 08854, USA
Wish someone could add insight to this question
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