North Carolina law allows LLC operating agreements to be written, oral, or implied. However, the same law states that oral or implied provisions cannot be held against someone that is not a party to the operating agreement if they conflict with the written terms. What does that mean? If a third party is relying on an oral statement regarding a business and the operating agreement (the LLC’s controlling document) is vague or silent on the provision, the third party may be in the right to rely on the oral provision.
It’s important to keep operating agreements as up to date as possible. Make sure you’re reviewing this document as the company you own, run, or invest in grows as well.
This post is not to be taken as legal advice, this is for educational purposes only.
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