Legal Question in Business Law in Colorado

Re: operating agreement for an LLC

Bad advice all the way around. First you don't just "fill out" an operating agreement. Well, I'm sure you can with some boilerplate piece of crap, but you'll be getting exactly what you pay for. You're running a business right? Why cut corners on having the entity's legal structure put together in a solid and professional way? If there ever comes a time when you really need a good operating agreement that a licensed professional drafted, you will be very sorry that you saved a few bucks on the front end doing it yourself with some online "kit." I've seen clients spend thousands of dollars to untangle themselves from a mess that they got into by going the do-it-yourself route. Spend the money up front to have it done right by a lawyer. You've taken a good first step in lining your business up with a tax professional, so why cut out a legal professional or an insurance professional? These are advisers that you want in your corner when and if the need arises. You don't go to a CPA after a tax problem arises, you go before so you can avoid the problem altogether. See my point? Have I beaten the horse enough already?

Most lawyers doing this kind of work, like me, charge a reasonable flat fee for it. I charge between $500-650 for an LLC formation depending on the complexity. For that cost, my clients leave the office with a binder full of documents that comply with state and federal law and protect them from the unknown.

The best advice any lawyer can offer you on this issue is simple: if you are serious about your business, then throw away the fill-in-the-blank stuff that probably doesn't comply with Colorado law and hire a professional to do it for you.