LLC Operating Agreement

We started quilting in college as a way to deal with exam stress. We eventually started selling our quilts, because (a) it turns out we’re actually pretty good at the whole quilting thing, and (b) our tiny apartment was becoming overrun with quilts. (Looooots of exam stress.) The demand for our exquisite creations became so great that we ended up contracting other quilters to help us fill our orders, and now this whole thing has snowballed to the point that we’re going to go ahead and turn it into a real-life business. An LLC, to be exact, and we’re going to call it Quintessential Quilts, because everyone loves alliteration.

Anyway, one of the first things we’re going to need to do is set up our LLC operating agreement. This is a customized document that outlines how Quintessential Quilts is going to, well, operate. It covers everything from daily operations to what happens when one of our members leaves the company. It also answers other questions, such as: Where is the company HQ located? What is Quintessential Quilts’ purpose and mission? What are the responsibilities of the LLC’s members? How much of the company does each one of them own? What happens if some outside entity wants to buy us out? How are profits going to be distributed?

Just as a heads-up, some states require LLCs to have a signed operating agreement before they can get down to business, and the requirements might differ slightly depending on which state we’re talking about. But even if our home state doesn’t require one, it’s not a bad idea to put one together anyway. After all, we’ve worked hard to turn Quintessential Quilts from a stress reliever into a money maker, and we want to make sure that we’re setting ourselves up for success...and protecting what we’ve created.