Operating Agreement for Eco Express
When creating a business using partners, one essential item is to ensure the foundation of the business is laid out in writing with as many details as possible. Elements to include are how the project will be financed, how the profits are distributed, how much of the profits are distributed, who will operate the facility and so forth. By having a specific and detailed agreement, it will help ensure the verbal agreements and mental understandings of each partner are clear to the other partners. It will also help eliminate any disputes down the road.
Our operating agreement took about four weeks to fully develop with an attorney, and ended up being 25 pages in length. This may sound like quite a bit, but during the development process of the agreement, each partner and the attorney would bring up questions that would require discussion, along with give and take from the other partners. Although our general goals were the same, each partner has different styles, tolerances for risk, and so forth that affected the final agreement. In the end we believe we came up with a solid document that will serve us well for the life of the project.