A well-drafted operating agreement prevents disputes before they happen. These clauses address the issues that commonly cause founder conflicts.
Key Takeaways
- Address what happens if a member leaves
- Define decision-making processes
- Include capital call provisions
- Plan for disputes and deadlock
Essential Clauses
- Capital contributions and ownership percentages
- Distributions and profit allocation
- Voting rights and thresholds
- Buyout provisions and valuation methods
- Non-compete and non-solicitation
- Dispute resolution process
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