A standard operating agreement is an official document that helps both single owners and partners to set grounds rules on how to operate a business. The agreement consists of minute details such as your company managerial roles, specific guidelines on how to bring employees on board, how to make decisions related to meetings, etc.
Your company information
Employees and Managers information
LLC Protection Rules
Capital and Profit Regulation
Administration, executive, and HR operating rules
Important rules for future conflicts and issues
It is not necessary to notarize your standard operating agreement. It is totally upon the discretion of an employer to make the document official. Even if you do not get it notarized, the agreement will still hold a valuable place in the eyes of the law.
A standard operating agreement will provide you the necessary protection from lenders and creditors trying to attack your personal assets. Many states automatically reign control over businesses without an operating agreement. So, it’s quite important to establish rules for your business than have court penalties later on.
It depends. Some banks will ask you to present a standard operating agreement, while others won’t. However, it is wise to get an agreement because the same protects you from different liabilities. Not only this, but an operating agreement is crucial to maintain good standing. So, we strongly recommend you get yours to establish the grounds rules for your business.