When it comes to starting a new business, there are a lot of legal documents that need to be prepared. Two of the most commonly used documents are the company agreement and the operating agreement. While these terms may sound similar, they actually refer to two different documents that serve different purposes.

A company agreement is a document that outlines the basics of a limited liability company (LLC). It includes details about the company`s structure, ownership, management, and operation. The purpose of this document is to establish the LLC and ensure that everyone involved understands the roles and responsibilities of each member.

On the other hand, an operating agreement is a legal document that outlines the rules and regulations that govern how an LLC will be run. It includes details about the rights and responsibilities of the LLC`s members, how profits and losses will be distributed, meeting procedures, and how the LLC will be dissolved if necessary.

While these documents may seem different, they can actually be the same thing. Some LLCs choose to combine their company agreement and operating agreement into a single document. This can help simplify the process of creating and maintaining legal documents for the LLC.

There are pros and cons to combining these two documents. On the pro side, it can save time and money by creating only one document instead of two separate ones. Additionally, it can help ensure that all members are on the same page regarding the rules and regulations of the LLC.

However, there are some potential downsides to combining the two documents. For example, it can make it more difficult to amend the agreement in the future. This is because any changes made to the document will affect both the company agreement and operating agreement sections, which may require additional legal work and expenses.

In conclusion, while a company agreement and operating agreement are two different legal documents, they can be combined into a single document for an LLC. As with any legal decision, it is important to weigh the pros and cons and consult with legal counsel before making a final decision.