ContractsCounsel Logo

Delaware Operating Agreement Cost

Clients Rate Lawyers on our Platform 4.9/5 Stars
based on 7,612 reviews
Home Blog Delaware Operating Agreement Cost

Jump to Section

A Delaware operating agreement costs between $500 and $2,000 for comprehensive legal assistance, including drafting, negotiation, and review. This also includes internal operations costs and the ownership structure of a Delaware limited liability company (LLC). This blog post will discuss the approximate Delaware operating agreement cost and other relevant details.

Breakdown of Delaware Operating Agreement Costs

The expense associated with creating a Delaware operating agreement can differ depending on multiple variables, such as the intricacy of the agreement, legal consultant charges, and the approach adopted for acquiring the agreement. Here are the estimated costs associated with generating a Delaware operating agreement:

  • Using Do-it-yourself (DIY) Templates: Digital legal platforms and pre-designed templates present a budget-friendly choice for small-scale and simple limited liability companies. These templates typically come in the price range of $50 to $200. Nonetheless, it's vital to recognize that using such templates might only encompass some specific business prerequisites and legal aspects.
  • Engagement of a Legal Attorney: Hiring a legal professional to draft a personalized operating agreement that aligns precisely with your LLC's distinct requirements ensures the utmost legal safeguards and precision. The fees for legal representation may span from $500 to $3,000 or even beyond, contingent on the complexity of the agreement and the legal expert's proficiency.
  • Online Legal Solutions: Online legal solution providers offer a middle-of-the-road alternative, bridging the gap between DIY templates and legal attorney services. These services offer a higher degree of customization compared to templates and generally come at a more reasonable cost than retaining a lawyer. The charges can range from approximately $150 to $800.
  • Document Preparation Services: Some companies specialize in composing legal documents, including operating agreements. These specialized services usually come at a price range of $100 to $500, presenting a moderately economical solution.

Types of Delaware Operating Agreement Costs

Below are the different types of limited liability companies operating in Delaware.

  • Sole Member Operating Agreement: The single-member operating agreement is drafted for limited liability companies (LLCs) owned by a single individual, commonly known as the "member." Despite the absence of multiple members, it is recommended to have an operating agreement in place. This document delineates the operational processes, management framework, and financial arrangements tailored to the lone proprietor. This agreement clarifies potential future changes, such as including new members or converting the LLC into a multi-member entity. Moreover, on an average, the cost of executing a sole member operating agreement ranges from $500 to $1,500.
  • Multiple Member Operating Agreement: This category of operating agreement is prepared for LLCs that boast numerous members. It outlines the functions, responsibilities, and decision-making procedures for each member. Operating agreements for multiple members typically encompass a more expansive array of subjects, including the distribution of profits and losses, member contributions, voting privileges, and protocols for admitting new members or transferring ownership interests. The flexibility offered by Delaware's legal framework enables thorough customization of these agreements to align with the LLC's and the cost range between $300 to $800.
  • Manager-managed LLC Operating Agreement: Within a manager-managed LLC, management responsibilities are delegated to one or more managers who may or may not hold membership. This type of operating agreement is suitable when members seek to prioritize their investments over day-to-day operations. The manager-managed operating agreement outlines the managers' jurisdiction and responsibilities alongside the contributions of non-manager members in decision-making and oversight. The extra complexity of determining these dual functions can affect the cost, ranging from $1200 to $2,000 or more.
  • Member-managed LLC Operating Agreement: All members actively partake in management and decision-making functions in a member-managed LLC. This operating agreement is apt for smaller LLCs where members prefer direct involvement in the company's operational affairs. The agreement defines the duties of each member and the cost of drafting this agreement ranges from $800 to $2,500.
  • Series LLC Operating Agreement: Delaware is one of the select states permitting the establishment of a "series" LLC, where the enterprise is categorized into multiple sub-sections, referred to as series. Each series can possess distinct assets, liabilities, and members while benefiting from the overall liability safeguard offered by the LLC structure. A series operating agreement lays out the regulations governing each series, offering a substantial level of adaptability and cost around $1500 to $3000.
Meet some lawyers on our platform

Brian R.

1 project on CC
View Profile

Nicholas M.

9 projects on CC
View Profile

Connie C.

8 projects on CC
View Profile

Gregory B.

138 projects on CC
View Profile

Documents Required in a Delaware Operating Agreement

Here are some key documents required to execute an operating agreement in Delaware:

  • LLC Formation Documents: Before preparing an operating agreement, the initial step involves establishing the LLC's existence by submitting a Certificate of Formation to the Delaware Division of Corporations. This pivotal document contains fundamental details about the company, including its name, registered agent, and primary purpose.
  • Allocation of Membership Interests: This paper delineates the strategy for distributing ownership interests within the organization. It explicitly outlines the ownership percentage attributed to each member and any contributions to the capital.
  • Framework for the Operating Agreement: Though Delaware's statutes don't prescribe a specific layout for an operating agreement, it's prudent to possess a comprehensive framework encompassing essential elements. This framework should contain aspects like the management structure (whether member-managed or manager-managed), voting rights, protocols for decision-making, profit and loss sharing, capital contributions, clauses for buying and selling ownership stakes, and the process for admitting new members.
  • Certificates of Ownership: As a tangible proof of a member's stake in the LLC, ownership certificates can be integrated into the operating agreement package.
  • Signature Requirements: Every LLC member should endorse the operating agreement, symbolizing their consent to its stipulations. This practice guarantees that all involved parties know their rights and responsibilities well.
  • Notarization and Witnessing: Although not obligatory in Delaware, notarizing the operating agreement can heighten its legitimacy and credibility. Moreover, the presence of witnesses during the signing can verify the involved parties' signature authenticity and their intentions.
  • Legal Consultation: While not a document, engaging legal expertise is strongly advised throughout this process. A proficient attorney well-versed in Delaware's corporate regulations can aid in crafting and reviewing the operating agreement, assuring its adherence to state statutes and its alignment with the collective interests of all members.

Key Terms for Delaware Operating Agreement Costs

  • Managing Member: A member designated with the authority to manage the LLC's day-to-day operations and decision-making.
  • Non-managing Member: A member who lacks authority in the LLC's management decisions but holds an ownership interest.
  • Capital Contributions: Capital contributions refer to the monetary or property investments made by members of the LLC in exchange for ownership interests.
  • Profit and Loss Allocation: How profits and losses are distributed among the members as specified in the operating agreement
  • Distributions: Payments made to LLC members from the company's profits, often according to terms outlined in the operating agreement.
  • Voting Rights: The authority granted to members to participate in decision-making processes is typically proportionate to their ownership percentages.
  • Transfer Restrictions: Stipulations governing the transfer of membership interests to maintain control and protect the LLC's stability
  • Buy-sell Provision: It refers to a mechanism within the operating agreement allowing members to buy out or sell their ownership interests under predetermined circumstances.
  • Capital Accounts: These are individual accounts that track the equity ownership of each member, including initial contributions and adjustments.
  • Dissolution: The formal termination of an LLC is often triggered by specific events or agreements among the members.

Final Thoughts on Delaware Operating Agreement Costs

Executing an operating agreement for your Delaware limited liability company is an investment to ensure your business's future stability and success. While implementation and legal costs can differ based on customization, complexity, legal assistance, and ongoing reviews, the advantages of having a well-crafted operating agreement are immense. Moreover, consulting with legal and financial experts guarantees that your operating agreement is lawfully sound, aligned with your organizational objectives, and capable of safeguarding your LLC's interests in different scenarios.

If you want free pricing proposals from vetted lawyers that are 60% less than typical law firms, click here to get started. By comparing multiple proposals for free, you can save the time and stress of finding a quality lawyer for your business needs.

Meet some of our Lawyers

Benjamin W. on ContractsCounsel
View Benjamin
5.0 (31)
Member Since:
March 11, 2021

Benjamin W.

Free Consultation
Los Angeles, CA
8 Yrs Experience
Licensed in CA
UCLA School of Law

I am a California-barred attorney specializing in business contracting needs. My areas of expertise include contract law, corporate formation, employment law, including independent contractor compliance, regulatory compliance and licensing, and general corporate law. I truly enjoy getting to know my clients, whether they are big businesses, small start-ups looking to launch, or individuals needing legal guidance. Some of my recent projects include: -drafting business purchase and sale agreements -drafting independent contractor agreements -creating influencer agreements -creating compliance policies and procedures for businesses in highly regulated industries -drafting service contracts -advising on CA legality of hiring gig workers including effects of Prop 22 and AB5 -forming LLCs -drafting terms of service and privacy policies -reviewing employment contracts I received my JD from UCLA School of Law and have been practicing for over five years in this area. I’m an avid reader and writer and believe those skills have served me well in my practice. I also complete continuing education courses regularly to ensure I am up-to-date on best practices for my clients. I pride myself on providing useful and accurate legal advice without complex and confusing jargon. I look forward to learning about your specific needs and helping you to accomplish your goals. Please reach out to learn more about my process and see if we are a good fit!

Matthew R. on ContractsCounsel
View Matthew
5.0 (2)
Member Since:
November 6, 2020

Matthew R.

Free Consultation
Denver, Colorado
16 Yrs Experience
Licensed in CO, OH
Case Western Reserve University

I am an attorney located in Denver, Colorado with 13 years of experience working with individuals and businesses of all sizes. My primary areas of practice are general corporate/business law, real estate, commercial transactions and agreements, and M&A. I strive to provide exceptional representation at a reasonable price.

Diana M. on ContractsCounsel
View Diana
5.0 (1)
Member Since:
September 22, 2020

Diana M.

Patent Attorney
Free Consultation
Boca Raton, FL
11 Yrs Experience
Licensed in FL, TX
Florida Coastal School of Law

Diana is a registered patent attorney and licensed to practice law in Florida and in federal courts in Florida and in Texas. For nearly a decade, Diana has been known as the go-to brand builder, business protector, and rights negotiator. Diana works with individual inventors, startups, and small to medium-sized closely held business entities to build, protect, and leverage a robust intellectual property portfolio comprising patents, trademarks, copyrights, trade dress, and trade secrets.

Jennifer W. on ContractsCounsel
View Jennifer
5.0 (1)
Member Since:
May 24, 2023

Jennifer W.

Immigration Attorney
Free Consultation
New York
9 Yrs Experience
Licensed in CT
Quinnipiac University Law School

I am an Immigration attorney specializing in business, corporate, and family immigration. I have served the immigrant (EB1A/B/C, NIWs, and PERM) and non immigrant (H, L, O, TN, E) needs for individuals, families, start-up companies, and some of the largest financial and commercial companies. I have experience with adjustment of status and consular processing. Please let me know how I can serve your immigration needs.

David L. on ContractsCounsel
View David
Member Since:
July 11, 2023

David L.

Managing Member
Free Consultation
El Paso Texas
25 Yrs Experience
Licensed in NM, TX
Texas Tech University School of Law

Experienced real estate, business, and tax practitioner, representing start up and established businesses with formation, contracts, and operational issues.

Barbara M. on ContractsCounsel
View Barbara
Member Since:
May 23, 2023

Barbara M.

Free Consultation
32 Yrs Experience
Licensed in MA, NY
Albany Law School

In 1991, Barbara Markessinis graduated cum laude from Albany Law School in Albany, New York. Shortly thereafter, Barbara was admitted to practice in New York State and in the United States District Court for the Northern District of New York. In 1997, Barbara was admitted to practice in Massachusetts and in April of 2009 she was admitted to the United States District Court for the District of Massachusetts. After graduating from law school, Barbara worked in private practice in the Albany, New York area and for Sneeringer, Monahan, Provost & Redgrave Title Agency, Inc. before joining the New York State Division for Youth and the New York State Attorney General's Real Property Bureau as a Senior Attorney. During her tenure with the Division for Youth, Attorney Markessinis found herself in Manhattan Family Court in front of Judge Judy! A career highlight for sure! After admission to the Massachusetts Bar, Barbara returned to private practice in the Berkshires and eventually started her own firm in June of 2006. Attorney Markessinis offers legal services in elder law, estate planning and administration/probate, family law, limited assistance representation (LAR), real estate and landlord tenant disputes. In 2016, after a family member found themselves in need of long term care, Attorney Markessinis’ launched her elder law practice. Through this experience, Attorney Markessinis discovered that the process of selecting a long term care facility and/or caregiver, applying for MassHealth and preserving an applicant’s assets are serious issues faced by many people every day. This area of the law is Barbara’s passion and she offers her legal services to families who find themselves in need of an elder law attorney. Attorney Markessinis is part of the Volunteer Legal Clinic in the Berkshire Probate & Family Court and has provided limited free legal services to patients and families at Moments House cancer support center in Pittsfield. She currently serves as a Hearing Committee Member for the MA Board of Bar Overseers and is a member of the Berkshire County and Massachusetts Bar Associations, Berkshire County Estate Planning Council (BCEPC). Attorney Markessinis is also the host of WUPE Talks Law. She also serves on the Town of Hancock Zoning Board of Appeals and Planning Board.

Alan W. on ContractsCounsel
View Alan
Member Since:
May 24, 2023

Alan W.

Free Consultation
Cherry Hill, New Jersey
41 Yrs Experience
Licensed in PA
South Texas School of Law - Houston

40 years practicing most areas of commercial real estate and commercial real estate financing: heavy emphasis on reviewing, drafting and negotiating commercial shopping center leases, agreements of purchase and sale, title and survey, letters of intent, closing documents, lease amendments, lease terminations, etc

Find the best lawyer for your project

Browse Lawyers Now
Learn About Contracts
See More Contracts
other helpful articles

Quick, user friendly and one of the better ways I've come across to get ahold of lawyers willing to take new clients.

View Trustpilot Review

Contracts Counsel was incredibly helpful and easy to use. I submitted a project for a lawyer's help within a day I had received over 6 proposals from qualified lawyers. I submitted a bid that works best for my business and we went forward with the project.

View Trustpilot Review

I never knew how difficult it was to obtain representation or a lawyer, and ContractsCounsel was EXACTLY the type of service I was hoping for when I was in a pinch. Working with their service was efficient, effective and made me feel in control. Thank you so much and should I ever need attorney services down the road, I'll certainly be a repeat customer.

View Trustpilot Review

I got 5 bids within 24h of posting my project. I choose the person who provided the most detailed and relevant intro letter, highlighting their experience relevant to my project. I am very satisfied with the outcome and quality of the two agreements that were produced, they actually far exceed my expectations.

View Trustpilot Review

Need help with a LLC Operating Agreement?

Create a free project posting

Want to speak to someone?

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

Request a call

Find lawyers and attorneys by city