Highlight Important Terms in the LLC Operating Agreement

Now that I draft my own LLC Operating Agreements, every time a term that is defined in the LLC Operating Agreement’s definition section appears elsewhere in the LLC Operating Agreement I highlight it.

I do this to make the LLC Operating Agreements easier to understand. Anything that gets more LLC owner/members to read more of their operating agreements is a benefit. The more information that flows to LLC owner/members the less likely they are to make future mistakes that jeopardize their LLC’s asset and liability protection.

When I organized “Form” LLCs, the “form” LLC Operating Agreements did not come with highlighted terms.

“Legal writing is one of those rare creatures, like the rat and the cockroach, that would attract little sympathy even as an endangered species.” Richard Hyland, “A Defense of Legal Writing”, 134 University of Pennsylvania Law Review 599, 600 (1986).