What does an operating agreement cost?

Clients Rate Lawyers on our Platform 4.9/5 Stars
based on 3,380 reviews

Jump to Section

Need help with an Operating Agreement?

Post Project Now

Post Your Project (It's Free)

Get Bids to Compare

 Hire Your Lawyer

What does an operating agreement cost? This is a question many business owners have when forming a Limited Liability Company. Let’s explore this question and also review some general information about Operating Agreements.

How Much Does an Operating Agreement Cost?

Operating agreements are legally binding documents used when formatting a limited liability company ( LLC ). They outline how an LLC is managed, who has ownership, and how it is structured.

Getting help from an LLC lawyer with an operating agreement is highly encouraged since these are fundamental documents needed for starting and running a business. The last thing a business owner wants is for there to be future disputes with business partners, so it is best to work with an experienced lawyer to make sure all terms of the business are clearly laid out in a legal document.

Based on ContractsCounsel’s marketplace data, the average cost of a project involving an operating agreement is $601.11 .

Operating agreement cost depends on many variables, which includes the service requested, number of LLC members, and other factors.

What’s Typically Included in an Operating Agreement

Below are the key sections that are typically included in an operating agreement.

  • Organization. This section includes name and address of the company, date it was created, names of members, ownership structure, and description of the business.
  • Management and Voting. This section outlines who manages the company and how it is managed. It also outlines if and how voting occurs. Some LLCs may opt to assign a single member to manager and also choose to give different number of votes to each member.
  • Capital Contributions of Members. This section outlines the amount of capital that is contributed to the company by each member and notes about future fundraising.
  • Membership Changes. This section outlines if and how membership changes will be handled, which can include adding new members, transferring membership shares, death of a member, etc. The goal is to have a clear process outlined so there are no questions should this occur.
  • Distributions. This section details how the LLC will distribute profits and losses to its members.
  • Dissolution. If the business fails and needs to be shut down, this section sets a process for dissolving the company.

Types of Operating Agreements

Operating agreements can vary greatly in their terms based on how the business needs to be set up. Some businesses can be run by one individual and others may have multiple members. The two main types of operating agreements are below:

  • Single-Member Operating Agreements. This type of operating agreement is needed when there is only one member of the LLC. These documents have a lower operating agreement cost since there are less terms to implement into the agreement.
  • Multi-Member Operating Agreements. This type of operating agreement is needed when there are multiple members of the LLC. These documents have a higher operating agreement cost since they typically require more terms to be implemented and customized by a business lawyer .

Examples of Operating Agreement Projects

Operating Agreement Drafting Service

Many businesses will hire a knowledgeable business lawyer to draft an operating agreement when they set up their LLC. There are many online services or templates that allow you to create an operating agreement, but these run a risk of not having the specific terms you want included which can lead to future disputes between members.

Operating agreement drafting typically involves a consultation with the business to learn about the terms they want included in the legal document, then implementing those terms into a contract template to make sure it includes everything the business requires. Operating agreement costs can vary based on how many custom terms need to be included in the document, which typically comes into play when there are multiple members.

Reasons you may need to find a lawyer to draft an operating include:

  • Recently Filed an LLC with State Secretary Office. A business may have just created an LLC and want to hire a lawyer to professionally draft the operating agreement.
  • Members Want Custom Terms. A business may have downloaded a template online, but the members need it customized to fit the terms required to operate the business.
Meet some lawyers on our platform

Daehoon P.

93 projects on CC
View Profile

Anand A.

23 projects on CC
View Profile

Michael M.

97 projects on CC
View Profile

Keidi C.

6 projects on CC
View Profile

Operating Agreement Review Service

In some circumstances, businesses may have an existing operating agreement that was put together at its inception. Given the fact that businesses evolve, they may require a lawyer to review the current document in order to answer questions or update it if the operating agreement doesn’t serve its intended purpose.

Reasons you may need to find a lawyer to review an operating agreement include:

  • Make Sure It Fits Your Business. Businesses will sometimes reuse templates of past operating agreements to save costs. In some circumstances, they may require a lawyer to review the operating agreement to make sure it fits their new business.
  • Update the Agreement with New Terms. Changes may have occurred in the operation of the business and a lawyer may need to update the agreement with the required changes.
  • A Member Has Questions. A member may be thinking of making a change and has questions about processes outlined in the operating agreement to make sure they fully comply and know their rights.
  • Major Change in Company. The company may be expecting a major change (acquisition, dissolution, etc.) and want to get a lawyer to review the existing operating agreement to make sure the business understands its rights.

Breach of Operating Agreement

In certain circumstances, relationships between business partners can become poor and a member thinks there was a breach of contract by one of the parties. This will require a review of the operating agreement and an analysis as to whether any of the terms were breached, which may lead to a business dispute.

Reasons you may need to review an operating agreement for a potential breach include:

  • Member Made an Unauthorized Decision. A member may have made a decision on behalf of the LLC that they were not allowed to make.
  • Member Isn’t Living Up to Capital Contribution Requirements. A member may not be fulfilling their responsibilities related to capital contributions.
  • Profit/Loss Disputes. One member may think the profit/loss of the LLC is not being handled in accordance to the terms of the Operating Agreement.

Drafting Operating Agreement Cost

Drafting an operating agreement comes with a cost, since it requires the time of a competent lawyer to complete the project.

ContractsCounsel’s marketplace data shows the average operating agreement drafting costs to be $570 across all states and industries.

Operating Agreement Review Cost

Hiring a lawyer to review an operating agreement will come with associated fees. The lawyer will need to spend time reading over the agreement to analyze the terms and consulting with the business.

ContractsCounsel’s marketplace data shows the average operating agreement review costs to be $850 across all states and industries.

How Do Operating Agreement Lawyers Charge?

Business lawyers have many ways of charging their clients for their services. Depending on the complexity of the project, the lawyer can suggest the best way to bill for services and may choose from the below options.

Hourly Rate

Many business lawyers prefer to bill their time with an hourly rate. This means the lawyer will offer an hourly rate to complete the operating agreement and log time in a timesheet to be invoiced at the end of the project. This is the safest way for the lawyer to charge clients because they are covered if the assignment takes longer than initially expected.

ContractsCounsel’s marketplace data shows the average hourly rate for a business lawyer ranges from $250 - $350 per hour.

Flat Fee

Flat fee billing structures are becoming more popular for contract drafting projects. Lawyers will simply provide a flat-fee price to the client for services to be approved and paid for when the project is completed. The benefit of flat fee billing is it provides certainty to the client on the total cost of the project. It is important to make sure the client knows what’s included with the fee before starting the project, as it may not include rounds of revisions.

ContractsCounsel’s marketplace data shows the average flat fee rate for operating agreement costs to be $676.25 .

Get Help with an Operating Agreement

Do you need help with an operating agreement project? If so, post a project in ContractsCounsel’s marketplace to receive flat fee bids from business lawyers to handle your project. 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

Rosario A. on ContractsCounsel
View Rosario
Member Since:
August 24, 2020

Rosario A.

Trademark Attorney
Free Consultation
Get Free Proposal
Seattle, WA
2 Yrs Experience
Licensed in WA
University of Washington

I'm a Washington-licensed lawyer specializing in trademark practice and with an extensive trademark education and academic background. I currently work with domestic and international businesses seeking trademark protection in the U.S. by conducting trademark searches, providing legal advice, submitting USPTO applications, and preparing responses to office actions. I'm passionate about trademark law and always looking forward to helping small and medium businesses promote their value by having a registered federal trademark. If you have questions or concerns about trademark/copyright/IP licensing and require legal advice, feel free to contact me so we can have a first chat.

Jeffrey P. on ContractsCounsel
View Jeffrey
Member Since:
August 24, 2020

Jeffrey P.

Free Consultation
Get Free Proposal
Deerfield Beach, FL
13 Yrs Experience
Licensed in FL, NY
Florida State University College of Law

Mr. Pomeranz serves as the principal of Pomeranz Law PLLC, a boutique law firm representing clients across myriad industries and verticals. Before founding the firm, Mr. Pomeranz served as Senior Vice President, Legal & Compliance and General Counsel of Mortgage Connect, LP in 2017. Mr. Pomeranz also served as Counsel, Transactions for Altisource Portfolio Solutions S.A. (NASDAQ: ASPS) beginning in 2013, and was based in the company’s C-Suite in Luxembourg City, Luxembourg. Mr. Pomeranz began his career with Mainline Information Systems, Inc. as an in-house attorney.

Ashley H. on ContractsCounsel
View Ashley
Member Since:
August 24, 2020

Ashley H.

Attorney at Law
Free Consultation
Get Free Proposal
Los Angeles, CA
11 Yrs Experience
Licensed in CA
St. Louis University School of Law

I have 10 years experience providing general counsel, in the form practical and timely legal advice, under strict deadlines to individuals and various business unit stakeholders, balancing commercial needs with legal concerns at large corporations and start-ups. I am skilled at reviewing, analyzing, drafting and negotiating commercial and government contracts globally for the procurement and sale of services and goods. I also help clients ensure compliance with regulations (including data privacy), laws and contractual obligations and protect, enforce and exploit intellectual property rights and support in the development of IP strategy. I am a Certified Information Privacy Professional/United States (CIPP/US) licensed by the IAPP - International Association of Privacy Professionals.

Diane D. on ContractsCounsel
View Diane
Member Since:
August 25, 2020

Diane D.

Contract Attorney
Free Consultation
Get Free Proposal
Fort Lauderdale, FL
19 Yrs Experience
Licensed in FL
Nova Southeastern University

Over 15 year experience drafting, reviewing and negotiating contracts both as in-house counsel and in law firms, including my own law firm.

Rinky P. on ContractsCounsel
View Rinky
Member Since:
August 25, 2020

Rinky P.

Managing Attorney
Free Consultation
Get Free Proposal
Tampa, FL
29 Yrs Experience
Licensed in CA, FL, TX
University of Minnesota

Rinky S. Parwani began her career practicing law in Beverly Hills, California handling high profile complex litigation and entertainment law matters. Later, her practice turned transactional to Lake Tahoe, California with a focus on business startups, trademarks, real estate resort development and government law. After leaving California, she also served as in-house counsel for a major lending corporation headquartered in Des Moines, Iowa as well as a Senior Vice President of Compliance for a fortune 500 mortgage operation in Dallas, Texas prior to opening Parwani Law, P.A. in Tampa, Florida. She has represented various sophisticated individual, government and corporate clients and counseled in a variety of litigation and corporate matters throughout her career. Ms. Parwani also has prior experience with state and federal consumer lending laws for unsecured credit cards, revolving credit, secured loans, retail credit, sales finance and mortgage loans. She also has served as a special magistrate and legal counsel for numerous Florida County Value Adjustment Boards. Her practice varies significantly from unique federal and state litigation cases to transactional matters. Born and raised in Des Moines, Iowa, Ms. Parwani worked in private accounting for several years prior to law school. Her background includes a Certified Public Accountant (CPA) certificate from Iowa (currently the license is inactive) and a Certified Management Accountant (CMA) designation (currently the designation is inactive). Ms. Parwani or the firm is currently a member of the following organizations: Hillsborough County Bar Association, American Bar Association, Tampa Bay Bankruptcy Bar Association, National Association of Consumer Bankruptcy Attorneys, and the American Immigration Lawyers Association. She is a Fellow of the American Bar Association. Ms. Parwani is a frequent volunteer for Fox Channel 13 Tampa Bay Ask-A-Lawyer. She has published an article entitled "Advising Your Client in Foreclosure" in the Stetson Law Review, Volume 41, No. 3, Spring 2012 Foreclosure Symposium Edition. She is a frequent continuing legal education speaker and has also taught bankruptcy seminars for the American Bar Association and Amstar Litigation. She was commissioned by the Governor of Kentucky as a Kentucky Colonel. In addition, she teaches Immigration Law, Bankruptcy Law and Legal Research and Writing as an adjunct faculty instructor at the Hillsborough Community College Ybor campus in the paralegal studies program.

Anatalia S. on ContractsCounsel
View Anatalia
Member Since:
August 26, 2020

Anatalia S.

Free Consultation
Get Free Proposal
Miami, FL
10 Yrs Experience
Licensed in FL
South Texas College of Law

High quality work product at affordable prices.

Nicole R. on ContractsCounsel
View Nicole
Member Since:
September 2, 2020

Nicole R.

Attorney / Owner
Free Consultation
Get Free Proposal
Mount Dora, FL
10 Yrs Experience
Licensed in FL
University of Miami School of Law

Full-service boutique law firm providing personalized services in business law, trademarks, and real estate closings/title work.

Maury B. on ContractsCounsel
View Maury
Member Since:
September 2, 2020

Maury B.

Senior Counsel
Free Consultation
Get Free Proposal
Minneapolis, MN
31 Yrs Experience
Licensed in MN, WI
Mitchell Hamline School of Law

Respected, driven, ethical, and high energy legal and business professional with strong focus on litigation, contracts and compliance issues. Critical management experience includes client development, developing core initiatives, and forecasting risk in major corporations. Strong legal research, analytical and problem solving skills with demonstrated adaptability in a multifaceted legal practice including delivering high value results in a Fortune 10 environment. Core competencies include: Tactical and strategic legal direction and support to clients which includes contract negotiation, drafting and review, business planning, and a passion for relationship management. Excellent legal research, writing, analytical and problem solving skills including legal training and compliance with regulatory requirements and corporate policies. Coordinates with in-house legal and business resources for team building with excellent verbal communication skills, coaching, and leadership.

Blake L. on ContractsCounsel
View Blake
Member Since:
September 22, 2020

Blake L.

Free Consultation
Get Free Proposal
Farmington Hills, MI
27 Yrs Experience
Licensed in MI
Wayne State University Law School

I am a sole practitioner who has been in practice for over 25 years. I have represented many small businesses during this time. Let me bring my expertise to your business.

Diana M. on ContractsCounsel
View Diana
Member Since:
September 22, 2020

Diana M.

Patent Attorney
Free Consultation
Get Free Proposal
Boca Raton, FL
10 Yrs Experience
Licensed in FL
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.

Brandon L. on ContractsCounsel
View Brandon
Member Since:
October 1, 2020

Brandon L.

Managing Partner, Attorney
Free Consultation
Get Free Proposal
Dallas-Fort Worth
11 Yrs Experience
Licensed in TX
Juris Doctor – Pepperdine University School of Law – Malibu, California

Brandon is a Texas Super Lawyer®, meaning he is among the top 2.5% of attorneys in his state. He has designed his practice to provide a unique ecosystem of legal support services to business and entrepreneurs, derived from his background as a federal district law clerk, published biochemist, and industry lecturer. Brandon is fluent in Spanish, an Eagle Scout, and actively involved with the youth in his community. He loves advocating for his clients and thinks he may never choose to retire.

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