New York Operating Agreement Cost

Clients Rate Lawyers on our Platform 4.9/5 Stars
based on 4,123 reviews

Jump to Section

Need help with an Operating Agreement?

Post Project Now

What does a New York LLC operating agreement cost ? This is a common question for LLC owners and members who must have an operating agreement in the state of New York. So let’s explore this question and review some general information about LLC operating agreements.

How Much Does a New York Operating Agreement Cost?

An operating agreement is a legally binding document that defines the rules, procedures, and structure of a Limited Liability Company (LLC).

Operating agreements include key information about the business, such as:

  • Management structure
  • Daily operations
  • Governance
  • Investments
  • Taxes
  • Profit sharing

These internal company documents are contracts executed by an LLC’s owner or members.

In New York, state laws require that all LLCs have a written operating agreement. The agreement doesn’t have to be filed with the state, but it must be drafted and signed within 90 days of the LLC filing Articles of Organization.

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

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

New York LLC owners are encouraged to consult 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 take advantage of tax benefits.

The cost of an operating agreement 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 New York operating agreement is $803.33.

What’s Included in a New York Operating Agreement?

Operating agreements will vary based on the type of business and whether the LLC is a single-member LLC or a multi-member LLC. An attorney will customize the agreement to fit the needs of the company. Still, the following terms are included in most standard operating agreements:

  • Organization. The basic details of the company include the date of establishment, a New York address for the company, the names of all members, and the ownership structure.
  • LLC activities. The purpose of the business and what services or goods are provided to customers.
  • Voting rights. How decisions are made within the company.
  • Management. Whether the LLC is member-managed or manager-managed.
  • Initial contributions. How much capital each member contributed to starting the LLC.
  • Profits, losses, and distributions. How the company’s profits and losses are distributed among the members.
  • Transfer of membership interest. Rules for adding and removing members, transferring membership, and what happens if a member dies.
  • Dissolution. The ways a 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.
Meet some lawyers on our platform

Jonathan M.

1 project on CC
View Profile

Jose P.

1 project on CC
View Profile

Albert M.

9 projects on CC
View Profile

Kelvin R.

11 projects on CC
View Profile

Who Needs an LLC Operating Agreement in New York?

Under New York statute NY LLC L § 417, all members of a New York LLC must adopt a written operating agreement within ninety days of filing the LLC Articles of Organization. In addition, any LLC owner or member must have an operating agreement for their business.

New York requires businesses to maintain a copy of the operating agreement and maintain copies of any amendments to the agreement.

New York Operating Agreement Projects

Operating Agreement Drafting in New York

New York is one of the few states that requires a written operating agreement by law, so many business owners turn to experienced business lawyers to draft this important document. An attorney will know what information needs to be included in the operating agreement to protect the LLC members and follow New York State regulations.

Before drafting an operating agreement, the attorney will consult with the LLC owner or members. The lawyer needs to learn about the business, the day-to-day operations, the management structure, and all the details of how the business functions to prepare a customized operating agreement.

Operating Agreement Review in New York

Operating agreement templates are widely available, so it isn’t uncommon for business owners to draft their own LLC operating agreement. However, the problem with these templates is that they are often vague and not state specific.

Before using an operating agreement created from a template, an LLC owner is encouraged to have the understanding reviewed by an attorney.

Operating agreements are legally binding contracts that are required by New York law. Therefore, it is important that an operating agreement is drafted correctly and includes all pertinent information.

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

New York Operating Agreement Drafting Cost

Hiring an attorney in New York 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 the average operating agreement drafting costs in New York are $865.00.

New York Operating Agreement Review Cost

Document review will also incur legal fees, although these fees are often less than drafting projects. 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 that the average operating agreement review costs in New York are $741.67.

How Do New York Lawyers Charge for an Operating Agreement?

Hourly Rates for Operating Agreements in New York

Many New York attorneys use an hourly fee structure to bill their clients. Hourly rates allow lawyers to track all the time they spend working on a task or case and bill the client at a set rate for their time.

Depending on the length of the project, some lawyers will bill the client monthly, while others will send one bill after the case. The downside to hourly rate billing is that the client won’t know the total cost of legal services until after representation has ended.

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

Flat Fee Rates for Operating Agreements in New York

Instead of charging hourly for drafting projects, many attorneys will opt to use a flat fee rate fee agreement. When using a flat fee, the lawyer will use their experience to determine a fair rate for legal services. If the client agrees to the price, they will pay upfront, and the lawyer will begin work on the project.

The advantages of flat rate billing are that the lawyer receives payment up front, and the client knows exactly what the cost of legal services will be before agreeing to hire the lawyer.

The client must clearly understand what is included in the fee agreement. For example, additional legal services will usually incur additional fees.

ContractsCounsel’s marketplace data shows that the average flat fee rate for an operating agreement in New York is $803.33.

Get Help with an Operating Agreement in New York

Do you need help with a New York 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 New York. 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

Orin K. on ContractsCounsel
View Orin
5.0 (3)
Member Since:
October 24, 2021

Orin K.

Free Consultation
New York
19 Yrs Experience
Licensed in NY
New York Law School

I'm an employment lawyer. I counsel and represent employees in all professions, from hourly workers to doctors and executives, and all in between. I also counsel and represent employers in many aspects of employment law.

Abhijit "Beej" D. on ContractsCounsel
View Abhijit "Beej"
5.0 (1)
Member Since:
October 25, 2021

Abhijit "Beej" D.

Managing Director
Free Consultation
Boston, MA
23 Yrs Experience
Licensed in MA, NY
University of Michigan Law School

Beej serves as counsel to innovators and entrepreneurs in a wide array of legal and business matters worldwide.

Scott S. on ContractsCounsel
View Scott
4.9 (14)
Member Since:
October 27, 2021

Scott S.

Free Consultation
New York, NY
16 Yrs Experience
Licensed in NY
Benjamin Cardozo School of Law

Scott graduated from Cardozo Law School and also has an English degree from Penn. His practice focuses on business law and contracts, with an emphasis on commercial transactions and negotiations, document drafting and review, employment, business formation, e-commerce, technology, healthcare, privacy, data security and compliance. While he's worked with large, established companies, he particularly enjoys collaborating with startups. Prior to starting his own practice in 2011, Scott worked in-house for over 5 years with businesses large and small. He also handles real estate leases, website and app Terms of Service and privacy policies, and pre- and post-nup agreements.

Reuben O. on ContractsCounsel
View Reuben
Member Since:
October 21, 2021

Reuben O.

Senior Managing Attorney
Free Consultation
14 Yrs Experience
Licensed in ID, WA
The University of Iowa

As an entrepreneur at heart, I enjoy working with business owners and executives on a variety of corporate matters, including mergers and acquisitions, corporate financing, corporate governance, public and private securities offerings, privacy regulation and early-stage corporate matters including formation. As a lawyer and business professional, I understand the value of providing personal service and focused legal answers to clients navigating a rapidly changing regulatory environment. Whether in Aerospace, Consumer Goods, or Technology, I find great success in work collaboratively with clients to strategical structure their business or implementing strategic growth-oriented financing opportunities.

Thaddeus W. on ContractsCounsel
View Thaddeus
Member Since:
October 22, 2021

Thaddeus W.

Free Consultation
Los Angeles, Ventura County, New York City
26 Yrs Experience
Licensed in CA, NY
University of Notre Dame Law School

Experienced legal counsel to entrepreneurs, small businesses, and investors. Advising clients starting, buying, selling, operating, financing, and investing in businesses // U.S. Army Veteran // Ironman Triathlete, Marathoner, Open Water Swimmer, USAT Triathlon Coach // Lover of Dogs, Cribbage, Craft Beer, Bourbon, and Cigars

Nichole C. on ContractsCounsel
View Nichole
Member Since:
October 22, 2021

Nichole C.

Free Consultation
17 Yrs Experience
Licensed in KY
University of Louisville, Brandeis School of Law

Licensed attorney in KY and Federally JD, 2006 University of Louisville MBA, 2006 University of Louisville BS, 2001 Berea College Licensed Title Agent Arbitrator and Certified Mediator Business Consultant Adjunct Professor, Law and Business

Michelle F. on ContractsCounsel
View Michelle
Member Since:
January 24, 2022

Michelle F.

Free Consultation
New York
5 Yrs Experience
Licensed in NY
Touro College Jacob D. Fuchsberg Law Center

I provide comprehensive legal and business consulting services to entrepreneurs, startups and small businesses. My practice focuses on start-up foundations, business growth through contractual relationships and ventures, and business purchase and sales. Attorney with a demonstrated history of working in the corporate law industry and commercial litigation. Member of the Bar for the State of New York and United States Federal Courts for the Southern and Eastern Districts of New York, Southern and eastern District Bankruptcy Courts and the Second Circuit Court of Appeals. Skilled in business law, federal court commercial litigation, corporate governance and debt restructuring.

Steve C. on ContractsCounsel
View Steve
Member Since:
October 26, 2021

Steve C.

Principal | Attorney
Free Consultation
24 Yrs Experience
Licensed in CA
Loyola Law School

I am a corporate and business attorney in Orange County, CA. I advise start-ups, early-growth companies, investors, and entrepreneurs in various sectors and industries including technology, entertainment, digital media, healthcare, and biomedical.

Oscar B. on ContractsCounsel
View Oscar
Member Since:
October 28, 2021

Oscar B.

Free Consultation
Saint Petersburg, FL
21 Yrs Experience
Licensed in FL
Stetson University, College of Law

Oscar is a St. Petersburg native. He is a graduate of the University of Florida and Stetson University, College of Law. A former US Army Judge Advocate, Oscar has more than 20 years of experience in Estate Planning, Real Estate, Small Business, Probate, and Asset Protection law. A native of St. Petersburg, Florida, and a second-generation Gator, he received a B.A. from the University of Florida and a J.D. from Stetson University’s College of Law. Oscar began working in real estate sales in 1994 prior to attending law school. He continued in real estate, small business law, and Asset Protection as an associate attorney with the firm on Bush, Ross, Gardner, Warren, & Rudy in 2002 before leaving to open his own practice. Oscar also held the position of Sales & Marketing Director for Ballast Point Homes separately from his law practice. He is also a licensed real estate broker and owner of a boutique real estate brokerage. As a captain in the US Army JAG Corps, he served as a Judge Advocate in the 3rd Infantry Division and then as Chief of Client Services, Schweinfurt, Germany, and Chief of Criminal Justice for the 200th MP Command, Ft. Meade, Maryland. He is a certified VA attorney representative and an active member of VARep, an organization of real estate and legal professionals dedicated to representing and educating veterans. Oscar focuses his practice on real small business and asset protection law.

Rachael D. on ContractsCounsel
View Rachael
Member Since:
October 28, 2021

Rachael D.

Free Consultation
New York
11 Yrs Experience
Licensed in NY
Touro Law

We help simplify every transaction and provide a superior level of customer service to create long lasting and trusted relationships with our clients. Our goal is to guide our clients with practical and zealous legal representation and eliminate the difficult nature of any legal transaction.

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