Sample Operating Agreement for Llc

When starting a Limited Liability Company (LLC), it’s important to have a well-written operating agreement in place. An operating agreement is a legal document that outlines the ownership and operating procedures of the LLC. The agreement also defines the roles and responsibilities of the members and managers of the LLC. A properly written operating agreement can help prevent misunderstandings and disputes that could harm the business.

Here’s a sample operating agreement for an LLC:

Article I: Formation

This article states the name of the LLC, the date of formation, and the state where the LLC is registered.

Article II: Purpose

This article outlines the purpose of the LLC, including the types of activities the business will engage in.

Article III: Members

This section defines who the members of the LLC are, their rights and responsibilities, and the process for admitting new members.

Article IV: Capital Contributions

This article outlines the capital contributions made by each member, including their percentage ownership in the LLC.

Article V: Profits and Losses

This section defines how profits and losses will be allocated among the members.

Article VI: Management

This article outlines the management structure of the LLC, including the roles and responsibilities of the managers and how they will be selected.

Article VII: Meetings

This section outlines the procedures for meetings, including the frequency, quorum requirements, and voting procedures.

Article VIII: Dissolution

This article outlines the procedures for dissolving the LLC, including the distribution of assets and liabilities.

Article IX: Amendments

This section outlines the process for amending the operating agreement, including the approval process for changes.

Conclusion

Writing an operating agreement is an important step in forming an LLC. By defining the roles and responsibilities of the members, outlining the management structure, and outlining the procedures for meetings and amendments, an operating agreement can help prevent misunderstandings and disputes that could harm the business. While this is a sample operating agreement for an LLC, it’s important to work with an attorney to draft an agreement that meets the specific needs of your business.