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Ask a Lawyer -- LLCs
LLC Question 117
Question: I am an attorney, I recently formed an LLC with another attorney. I went to the bank to open a business account and they said they could not until I produced a partnership agreement. Are LLCs required to have partnership agreements? My partner says not.
Response: The members of an LLC enter into operating agreements (the analogous term for partnerships would be "partnership agreements"). The vast majority of states do not require LLCs to have operating agreements. See Survey of State LLC law on operating agreements. Be that as it may, my sense is that banks often ask to see a copy of the LLC operating agreement prior to opening an account (regardless of whether it is required under state law) to verify who the members and managers of the LLC are. In the case of New York, it appears LLCs are required to have written operating agreements under New York LLC Act, Section 417. Below is a link to the MedLawPlus.com® LLC Operating agreement. It only costs $16.99 and can be created in minutes through use of the online questionnaire system. Paying users can obtain an MS Word version of the document to further edit offline.
Submitted: 7-7-2007; Michael, NY
Response: 7-18-2007; JJR
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