Depending on the business entity, the agreement will have a different name. Partnership has Partnership Agreements, Limited Liability Companies (LLC’s) have the Operating Agreement, and Corporations have Bylaws.
Compared to Partnerships and Limited Liability Companies, the Corporation is required to have Bylaws according to Florida law. If the LLC does not have an Operating Agreement then the Florida Revised Limited Liability Act will govern any disputes.
If the entity does not have any agreements, then it is susceptible to claims of creditors arguing that the entity is a sham because the formalities of the business entity are not being followed. In legal terms this is called “piercing the corporate veil.”
The entity agreement can save many owners disputes. It will outline all the operations of the company like how distributions will be made, who will make decisions, and what happens when there is a dispute.
