Starting a LLC with a partner or several partners can be a great experience.
If it is not handled correctly, however, business troubles can translate into relationship troubles.
This is especially sad when the business partners are family members or friends.
Here are a few questions to ask potential business partners before forming a business together.
The questions are arranged in the form of an outline which can be used in drafting an operating agreement.
This is not a comprehensive list, but should serve as a good starting point for conversation.
Introduction

• Name of LLC
• List of all members
• Purpose
• Official start date
• Place of business

Creation and Basic Functions

• What is the initial investment of each member, and how is each investment owned (e.
  g.
  cash, knowledge, intellectual property, etc.
  )?
• How are new members admitted?
• Time each member will devote to LLC - what are the expectations?
• How will time be tracked and reported?
• How many members need to be present to make a decision on behalf of the LLC?
• What percentage of those present, or how many members need to be in favor of a decision for it to be official?
• Can someone have a proxy vote on his/her behalf?
• Can special meetings be held, or will there be a strict schedule?
• If special meetings are allowed, how are they initiated and how are other members notified?
• What actions can/cannot be taken by one member individually on behalf of the LLC?

Management of LLC Affairs

• Accounting - who is in charge?
• What type of bank account will be set up?
• Where will the account be?
• Who will have access to the account?
• Other unique responsibilities of individual members
• What are ordinary business activities of LLC?
• How is reimbursement for expenses of members handled?
• What will be member salary and other compensation for services?
• What is profit used for, other than salaries?
• Will fiscal year for business vary from typical calendar year?

Transfers of Interest, Withdrawal, Death, Removal of members

• How does someone voluntarily withdraw from the LLC?
• How a member may be removed by other members?
• What happens when a member passes away?
• Will LLC interest be transferable (to children, or to be sold to another person)?

Capitalization

• Any interest on contributions?
• Will additional contributions be required?
• How will future loans by a member to the LLC be handled?
• How will withdrawal of capital be handled?
• How will individual assets be tracked within the LLC?

Allocation of Profits and Losses

• Equal or unique among different members?
• How will profit or loss be computed for individual taxes of members?

Dissolution of LLC

• What would terminate the LLC? Death? Time? An event? A specific breach? A vote?
• How are assets distributed if LLC is dissolved?
• Who gets what and in what order?

Miscellaneous

• Will arbitration be preferred in a dispute or breach?
• Any other agreements unique to the LLC that do not fit in another category?
• The laws of which state will apply in a dispute?
• What boilerplate terms will be added (severability clause, etc.
  )?

One last item to consider is how specific terms will be defined.
In my experience it is easiest to handle this after the operating agreement is drafted, when it is easiest to see what terms need defining.
Although this task can be handled last, the definitions are normally placed in the beginning of the operating agreement.
May your business be a great success!