Did that scare you? If you haven't adopted your operating agreement or aren't following the rules it laid out, you should be scared. Your business needs to have an operating agreement in place AND follow what it says. No active operating agreement? No liability protection.  You are completely exposed.

As I explain in my video and in detail at http://www.llcwizard.com/adopt-your-operating-agreement, the operating agreement is the playbook for your business. Setting up your rules and then playing by them is essential. The government granted limited liability to encourage people to start businesses by limiting their exposure to liabilities incurred by the company.  But you only get the liability protection if the state recognizes you as a company. If you don't even bother to create a playbook, why would any court think you weren't just using your "company" as an alter ego?

Make sure your rulebook is comprehensive enough, but not so lengthy that no one ever wants to open it.  If you haven't downloaded my sample Operating Agreement yet or want to get it again, a free copy is available here.  The paid version comes with over two hours of step-by-step audio explanation so you can know what each section does and how it will work for your company.  The template can be purchased by itself or as part of any of my LLC Wizard Packages.