Free LLC Operating Agreement
Your LLC operating agreement is the internal document that defines ownership structure, operational procedures, profit-sharing, dispute resolution, and more. While not required by most states, it’s essential—especially for multi-member LLCs—to avoid default state rules.
DOWNLOAD OPERATING AGREEMENT TEMPLATE
What’s an Operating Agreement?
An operating agreement is a legal contract among LLC members that governs how the LLC will run: ownership stakes, financial contributions, distributions, voting, and responsibilities. It serves as a clear reference when legal or business issues arise. Although not required in most states, it’s highly recommended for legal protection and clarity. A few states—like California, Missouri, and New York—make it mandatory.
Why Use This Template?
Our professionally written template is clear, concise, and designed to work in any state. You can complete it in under five minutes. We also offer versions for single-member, multi-member, and manager-managed LLCs.
Key Sections in the Template
- Formation: Confirms that the LLC exists legally and identifies state laws governing it.
- Capital Contributions: Documents initial investments and clarifies that members are not required to contribute more later.
- Profits & Distributions: Allocation, timing, and rules for distributing earnings proportionally.
- Management Structure: Defines member vs. manager-managed roles, authority of a Chief Executive Manager, and protections for good-faith actions.
- Compensation: Guidelines for reimbursement and compensation for managers or members.
- Bookkeeping: Rules for record-keeping, annual accounting, and member statements.
- Transfers & Dissolution: Procedures for transferring membership interest and formally dissolving the LLC.
- Certification & Exhibits: Member signature page and inclusion of exhibits for member details, capital, and contribution records.
