California Operating Agreement Cost

Clients Rate Lawyers on our Platform 4.9/5 Stars
based on 2,656 reviews

Jump to Section

Need help with an Operating Agreement?

CREATE A FREE PROJECT POSTING
Post Project Now

What does a California operating agreement cost? This is a common question for LLC owners who are required to have an operating agreement in the state of California. Let’s explore this question and review some general information about LLC operating agreements.

How Much Does a California Operating Agreement Cost?

An operating agreement is a legally binding document that defines the rules and organizational structure of a Limited Liability Company (LLC). Operating agreements are executed by LLC members and should include key information such as:

  • The business-like management structure
  • Daily operations
  • Governance
  • Investments
  • Taxes
  • Profit sharing

In California, the California Corporations Code requires that all LLCs have an operating agreement. Operating agreements do not have to be filed with any state entity; they can be oral or implied contracts; however, many California business owners choose to draft a hard copy operating agreement.

Operating agreements are important documents and provide LLC owners in California with the following benefits:

  • Proof of company ownership
  • A tangible document outlining company policy and procedure
  • Reinforcement of limited liability status
  • An override of California’s default tax laws
  • Conflict resolution among LLC members

Business owners are encouraged to consult with an attorney with experience drafting operating agreements. An attorney will know how to custom tailor an operating agreement to fit your business’s needs, protect members, and reap tax benefits.

The operating agreement cost will vary depending on the length and complexity of the document. However, based on ContractsCounsel’s marketplace data, the average cost of a project involving a California operating agreement is $687.00.

What’s Included in a California Operating Agreement?

Operating agreements for LLCs in California are regulated by California Corporations Code § 17701.10. The code suggests that the following information be included in a standard LLC operating agreement:

  • Organization. The organization is the basic details of your company, including the date the company was established, a California address for the company, the names of all members, and the ownership structure.
  • LLC activities. Your operating agreement should lay out the purpose of the business and what services or goods are provided to customers.
  • Voting rights. Each member of the LLC will have voting rights for making decisions within the company.
  • Management. An LLC management structure is set up as either a member-managed LLC or a manager-managed LLC. The structure should be evident in the operating agreement.
  • Initial contributions. In a multi-member LLC, it is vital to record how much capital each member contributed to starting the LLC.
  • Profits, losses, and distributions. This clause outlines how the company’s profits and losses are distributed among the members.
  • Transfer of membership interest. The operating agreement should include rules for adding and removing members, transferring membership, and what happens if a member dies.
  • Dissolution. The dissolution section outlines the company’s plan of dissolution, which outlines how the company can be dissolved.
  • Signatures. Each member must agree to and sign the operating agreement. The agreement should be on file in a safe place and accessible to all members.

Who Needs an LLC Operating Agreement in California?

A single-member LLC and a multi-member LLC must have an operating agreement in California. The operating agreement does not have to be filed with the state and is meant to be kept as an internal business document.

The California Corporation Code allows an operating agreement to be written, oral, or implied. However, it is best practice to have a written document signed by all members.

Meet some lawyers on our platform

Namrita N.

13 projects on CC
View Profile

Sunnita B.

15 projects on CC
View Profile

Tabetha H.

10 projects on CC
View Profile

Max M.

102 projects on CC
View Profile

California Operating Agreement Projects

Operating Agreement Drafting in California

Many California business owners choose to hire an experienced Attorney to draft their operating agreement. An attorney will know what information needs to be included in the operating agreement to protect the members and abide by the California Corporation Code.

Before beginning a working agreement draft, the attorney will consult with the LLC partners. After learning about the business, business activities, management structure, and daily operations, the lawyer can draft a customized operations agreement.

Operating Agreement Review in California

It is common for business owners to draft their operating agreement, especially because templates for these agreements are readily available from many sources online.

Even if an owner drafts their operating agreement, they should remember that this is a legally binding document that could affect their business. Therefore, it is recommended that business owners have a licensed attorney review an operating agreement before it is signed.

An attorney will read over the operating agreement to ensure it is correctly customized to the needs of the business and adheres to California laws and regulations.

California Operating Agreement Drafting Cost

Hiring an attorney in California to draft an operating agreement will incur legal fees because it requires the time and expertise of a licensed lawyer to complete the project.

ContractsCounsel’s marketplace data shows that California's average operating agreement drafting costs are $749.67.

California Operating Agreement Review Cost

Document review will also incur legal fees. The attorney will take time to consult with the LLC partners, read over the operating agreement, and make suggestions for revisions.

ContractsCounsel’s marketplace data shows the average operating agreement review costs in California are $499.00.

How Do California Lawyers Charge for an Operating Agreement?

Hourly Rates for Operating Agreements in California

Hourly rate fee structures tend to be more popular for most California lawyers because it is the best fee arrangement to ensure lawyers are compensated for their time.

In an hourly rate structure, an attorney keeps track of the time spent on a project and then bills the client at a set rate for the total time. Using this structure, lawyers can be sure they are fairly compensated even if a project or case takes longer than expected.

ContractsCounsel’s marketplace data shows that the average hourly rate for a business lawyer in California ranges from $200 - $350 per hour.

Flat Fee Rates for Operating Agreements in California

Another popular fee agreement lawyers choose to use, especially for contract drafting, is a flat fee rate. In this fee arrangement, after consulting with the client, the lawyer will estimate how long the project will take and then quote the client a lump sum rate for legal services. Most lawyers require payment upfront before beginning work.

A flat fee billing structure is usually more desirable for clients because they know exactly what they are charged for legal services. However, it is important to ensure the client knows what’s included with the fee before starting the project because it may not include revisions or consultations.

ContractsCounsel’s marketplace data shows the average flat fee rate for an operating agreement in California is $687.00.

Get Help with an Operating Agreement in California

Do you need help with a California operating agreement project? If so, post a project in ContractsCounsel’s marketplace to receive flat fee bids from business lawyers who are licensed to practice law in California. All lawyers on the ContractsCounsel’s platform are vetted by our team to make sure you are provided with top tier service.

How ContractsCounsel Works
Hiring a lawyer on ContractsCounsel is easy, transparent and affordable.
1. Post a Free Project
Complete our 4-step process to provide info on what you need done.
2. Get Bids to Review
Receive flat-fee bids from lawyers in our marketplace to compare.
3. Start Your Project
Securely pay to start working with the lawyer you select.

Meet some of our Lawyers

View Moss
Member Since:
November 17, 2021

Moss S.

Attorney
Free Consultation
Get Free Proposal
Boca Raton, FL
34 Yrs Experience
Licensed in FL, MA, RI
Suffolk Law School

Over 30 years of experience practicing commercial real estate and complex business litigation law.

View Abraham
Member Since:
November 18, 2021

Abraham W.

Owner
Free Consultation
Get Free Proposal
Nashville, TN
3 Yrs Experience
Licensed in NY, TN
Harvard Law School

Abraham's practice focuses on counseling emerging group companies in the technology and other commercial agreements, and assisting equity financings (specifically venture capital).

View Dave
Member Since:
November 22, 2021

Dave Y.

CO
Free Consultation
Get Free Proposal
Colorado Springs
1 Yr Experience
Licensed in CO
University of Denver

I am available for data privacy and cybersecurity projects. I am CIPP/US certified through the IAPP. I have also taken coursework focused on the GDPR through the London School of Economics. In my past career I was an intelligence officer. I am well acquainted with information security best practices and I have experience developing and implementing administrative controls for classified information and PII. I have worked extensively overseas and I am comfortable integrating with remote teams. Feel free to reach out any time if you have any additional questions on my areas of expertise or professional background.

View Peter W.
Member Since:
January 24, 2022

Peter W. Y.

Member
Free Consultation
Get Free Proposal
Virtual
23 Yrs Experience
Licensed in CT, NY, PA
Haub School of Law at Pace University

Perceptive, solution-driven counselor and experienced attorney. Record of successful verdicts, settlements, negotiations, arbitrations, mediations, and deals. Effective claims management, litigation strategy, and risk consulting. Proven ability to oversee litigation teams, communicate to stakeholders, manage multiple projects effectively, and expand business relationships. Extensive experience handling legal issues in engineering and construction, environmental litigation, corporate and contractual, and insurance issues.

View Daehoon
Member Since:
November 26, 2021

Daehoon P.

Corporate Lawyer
Free Consultation
Get Free Proposal
New York, NY
7 Yrs Experience
Licensed in NY
American University Washington College of Law

Advised startups and established corporations on a wide range of commercial and corporate matters, including cross-border deals, technology law, and M&A. Commercial and Corporate • Advised companies on commercial and corporate matters and drafted corporate documents and commercial agreements—including but not limited to —Convertible Note, SAFE, Promissory Note,Terms and Conditions, SaaS Agreement, Employment Agreement, Contractor Agreement, Joint Venture Agreement, Stock Purchase Agreement, Asset Purchase Agreement, Shareholders Agreement, Partnership Agreement, Franchise Agreement, License Agreement, and Financing Agreement. • Drafted and revised internal regulations of joint venture companies (board of directors, employment, office organization, discretional duty, internal control, accounting, fund management, etc.) • Revised joint venture agreements and master land lease agreements, and so forth. • Drafted legal memos on finance regulations Global Blockchain Projects • Advised blockchain startups ICOs, securities law, business license, regulatory compliance, and other commercial and corporate matters. • Drafted or analyzed coin or token sale agreements for global ICOs. • Assisted clients with corporate formations, including filing incorporation documents and foreign corporation registrations, drafting operating and partnership agreements, creating articles of incorporation and bylaws. Litigation and Dispute Resolution • Conducted legal research, document review, and drafted pleadings, motions, and other trial documents. • Advised the client on strategic approaches to discovery proceedings and settlement negotiation. • Assisted clients with business dispute settlements.

View Bruce
Member Since:
January 11, 2022

Bruce B.

Managing Attorney
Free Consultation
Get Free Proposal
Tampa, FL
7 Yrs Experience
Licensed in FL
University of South Carolina

Bruce Burk practice is in the area of small business, labor and employment, contracts, real estate and civil litigation. Bruce has litigated over 40 trials as well as many appeals. He prioritizes client communication and satisfaction as well as delivering high quality work product.

View Cory
Member Since:
November 29, 2021

Cory B.

Attorney-at-Law
Free Consultation
Get Free Proposal
Bellaire, OH
6 Yrs Experience
Licensed in OH
Duquesne University School of Law

Attorney Cory Barack specializes in business, real estate, probate, and energy law. He can help you with oil/gas leases, easements, property sales, drafting contracts and wills, setting up companies, and resolving disputes. He is licensed to practice law in Ohio and is located in Eastern Ohio.

View Cameron
Member Since:
January 24, 2022

Cameron S.

Partner
Free Consultation
Get Free Proposal
San Francisco
27 Yrs Experience
Licensed in CA
University of San Francisco

A commercial contracts lawyer with over 25 years of experience (both at large law firms and in-house as general counsel of a public company)

View Brittany
Member Since:
December 4, 2021

Brittany B.

Attorney
Free Consultation
Get Free Proposal
Ann Arbor, MI
8 Yrs Experience
Licensed in MI
Wayne State University Law School

Brittany advises startups and emerging and public companies at all stages of growth, with focuses on formation and corporate governance matters, securities, venture capital financings, M&A and other strategic transactions, commercial contracts and general corporate counseling. Brittany represents clients across a broad spectrum of industries, including technology, automotive, mobility, digital health, consumer products and manufacturing.

View James
Member Since:
December 5, 2021

James A.

Attorney
Free Consultation
Get Free Proposal
Birmingham, AL
5 Yrs Experience
Licensed in AL
Birmingham School of Law

James Allen is a native of Birmingham, Alabama. Mr. Allen has a considerable amount of experience in the areas of domestic relations, criminal law, family law, and general civil litigation.

View Emily
Member Since:
December 6, 2021

Emily Y.

Partner
Free Consultation
Get Free Proposal
Colorado Springs, Colorado
6 Yrs Experience
Licensed in CO
University of Colorado

I am available to advise on entity formation, contracts, and employment policies. I am also comfortable litigating business disputes including partnership disputes and employment cases. Prior to opening my current practice, I worked for several years in a small civil litigation practice focused on employment matters and civil litigation. I attended law school at the University of Colorado, and I went to the University of British Columbia for my undergraduate education.

Find the best lawyer for your project

Browse Lawyers Now

Want to speak to someone?

Get in touch below and we will schedule a time to connect!

Request a call