Once you have registered your restaurant as a limited liability company, you will need to draft an LLC operating agreement to dictate the terms of how your business will be run and the process for making business decisions. All members of your LLC and any investors should be consulted when forming your LLC operating agreement as that operating agreement will affect their rights.
An LLC is a type of business entity available in every state in the United States. LLCs allow their members to limit personal liability in regards to debts incurred by their business. It is possible to form a single member LLC and if your restaurant is registered as a single member LLC you may consider operating your LLC without an operating agreement as operating agreements are typically intended to govern the relationship between the members of the LLC.
Advertisement Article continues below this adYour LLC operating agreement will define the financial structure of your restaurant. The agreement should identify who has made capital contributions to the restaurant including any contributions such as kitchen appliances and restaurant furniture. The operating agreement should also specify how members of the LLC will share in the profits and losses of the restaurant. Typically, the amount of profits and losses a member is entitled to will depend on the level of their capital or equipment contributions.