Cleveland, OH asked in Business Formation and Business Law for Ohio

Q: Is an operating agreement same as lease agreement between a holding & operating LLC?

2 Lawyer Answers
Glenn B. Manishin
Glenn B. Manishin
Answered

A: No, an operating agreement governs how an LLC enitity is run among its members (essential shareholders), including division and distribution of profits, not an agreement between two or more LLCs or other legal corporate entities.

Jonathan R. Roth
Jonathan R. Roth
Answered

A: No they are not the same. An operating agreement governs how the LLC is to be operated and what happens if a Member of the LLC dies, becomes disabled, or simply wants to quit. A lease is an agreement that usually defines what property someone is leasing from another such as a lease of real property or equipment from one party to another.

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