As a business owner, one important step in setting up your limited liability company (LLC) is to draft an operating agreement. This document outlines the governing rules and regulations of your LLC. It is beneficial to have a solid operating agreement in place to protect all parties involved, establish clear expectations, and minimize potential conflicts. If you are looking for a simple LLC operating agreement sample, read on to learn more.
LLC Operating Agreement Template
[Name of LLC] Operating Agreement
This Operating Agreement (the “Agreement”) is made and entered into on [Date] by and between [Name of Member] (“Member 1”), [Name of Member] (“Member 2”) and [Name of Member] (“Member 3”) (collectively referred to as “Members”).
1. Formation of LLC: The Members hereby agree to form a limited liability company named [Name of LLC] (the “Company”) pursuant to the laws of the state of [State].
2. Purpose of LLC: The purpose of the Company is to engage in any lawful business or activity for which limited liability companies may be organized under the laws of [State].
3. Members and Capital Contributions: The Members and their respective capital contributions are as follows:
Name of Member Capital Contribution
Member 1 [Amount]
Member 2 [Amount]
Member 3 [Amount]
4. Profits and Losses: The profits and losses of the Company shall be allocated to the Members in accordance with their respective capital contributions.
5. Management: The Members shall have equal management rights in the Company. All decisions shall be made by a majority vote of the Members.
6. Transfers: No Member may transfer all or any part of their membership interest in the Company without the prior written consent of the other Members.
7. Dissolution: The Company shall be dissolved upon the occurrence of any of the following events: (a) the written agreement of the Members; (b) the death, bankruptcy, or insolvency of a Member; or (c) the entry of a decree of judicial dissolution by a court of competent jurisdiction.
8. Governing Law: This Agreement shall be governed by and construed under the laws of the state of [State].
9. Entire Agreement: This Agreement constitutes the entire agreement between the Members with respect to the subject matter hereof and may not be amended except in writing signed by all Members.
IN WITNESS WHEREOF, the Members have duly executed this Operating Agreement as of the date first above written.
[Signature Block for Each Member]
This is a simple LLC operating agreement sample that can be customized to fit your specific needs. It is important to note that this operating agreement template may not be suitable for all LLCs, especially those with more complex ownership structures or business objectives. In such cases, it is recommended that you consult with an attorney to ensure that your operating agreement adequately addresses all relevant issues.
In conclusion, having an operating agreement in place is essential for the smooth operation and management of your LLC. It is recommended that you review and update your operating agreement regularly to ensure that it accurately reflects the current state of your business. Use this simple LLC operating agreement sample to get started, and seek professional guidance as needed to ensure that your LLC is properly protected.