I'm forming a single-member LLC for a small woodworking side business. I downloaded a free operating agreement template and filled it out. A friend said I should have a lawyer look at it, but that seems like overkill for a one-person shop with no real assets yet. I'm not planning to bring in partners or investors. Is it really necessary to pay a lawyer hundreds of dollars to review something like this, or is the template fine for now?
LLC formation
Do I really need a lawyer to review my LLC operating agreement?
For a single-member LLC with no partners? The operating agreement is mostly for you, and the bank. Unless you're doing something unusual, a standard template is fine. Save the lawyer money for when you actually need it.
Hundreds? Try a few hundred to a thousAnd depending on the lawyer. That said, if you're really just a one-person shop witih no assets, the risk is low. But if you ever want to sell the business or bring in a partner, a sloppy OA can cause headaches later. Maybe get a free consult from a small business clinic?
My lawyer charged $400 to review and tweak my single-member OA. Felt steep at the time, but she caught a clause that would have made it harder to add my spouse as a member later. So... depends on your future plans. If you're 100% sure you'll stay solo forever, template is probably fine.
i used a template for my first LLC. Then I got sued (frivolous, but still). The lawyer I hired to defend me said my OA was fine, but he also said the template's arbitration clause was poorly worded and could have been a Problem. Cost me nothing extra because it never came up. Small sample size, but there it is.
OP said 'no real assets yet.' That's the key. If you have nothing to protect, a lawyer review is a lxuury. Once you have equipment, inventory, or a lease, revisit it.
This thread is making me nervous. I did the same thing last year—free template, single member, no lawyer. Now I'm worried I've been walking around with a 'sloppy OA' like a chump.
Relax. The template isn't radioactive. The main thing is that your OA doesn't contradict state law. Most reputable templates are written to comply with the default rules in your state. The lawyer review is about customization, not fixing fatal errors.
Honestly, for a single-member LLC with no assets, the OA is almost theater. The bank wants to see it, the state doesn't usually require it, and if you get sued, the liability shield comes from the LLC status itself, not the OA. Spend the money on insurance instead.
That last part is debatable. The OA can matter for proving you respected formalities (separate bank account, etc.), which helps maintain the liability shield. But yeah, a template that's properly executed is usually enough for that.
Bottom line: if you're truly solo and low-risk, skip the lawyer. If you're the type who loses sleep over 'what if,' pay for a review. Either way, stop overthinking it and go make some sawdust.