QUESTION
Is Operating Agreement or LLC valid or legitimate?
Asked on Feb 07th, 2013 on Contracts - Pennsylvania
More details to this question:
Is an operating agreement between business partners valid, if the operating agreement was drafted and signed before the LLC was sign? The agreement states that I am an interest member of an LLC, but is it valid if the LLC was created after the agreement was signed and dated?
1 ANSWER
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Generally speaking, yes. Operating agreements are frequently entered into contemporaneously with, or even before, formal formation of the related LLC. In construing the agreement, the court will be primarily concerned with whether the signatories intended that it would apply to the soon-to-be-formed entity. If this question can be answered affirmatively -- which, in your case, it can -- then the agreement should be enforceable.
Answered on Feb 07th, 2013 at 3:13 PM