Take time for caution when forming an LLC

Many people who form a limited liability company with family members, friends or acquaintances do so without taking the time to follow some important formalities. One such formality is the creation of a well-thought-out, written operating agreement that clearly sets forth the various rights and responsibilities of the members and managers of the entity. Unfortunately, many who forego the effort and expense to prepare an operating agreement in the beginning learn to regret their failure to do so later.

Within the Colorado Revised Statutes, the Colorado Limited Liability Company Act is designed to provide those who wish to form an…