An operating agreement is a legal document that outlines the ownership interests and duties of members (owners) of limited liability companies (LLCs) and cannot be used in connection with any other type of business entity. It also defines the company’s management structure, describes how the company’s profits/losses are allocated and distributed, and sets out the terms of engagement for the company’s members.
If you plan on forming an LLC with partners, then you NEED an operating agreement. Think of it as something like an LLC Pre-Nup…you hope you never need to use it, but will be so glad you have it if you do.
More About This Template…
This template was drafted by a licensed, experienced business law attorney and reviewed for correctness by a law professor. So trust us, you’re in good hands! This template is easy-to-read and ready-to-use. All you have to do is download and fill in the blanks. But, if you still need some guidance on how to complete the template, we have included drafting notes and comments in the document to help guide you as you navigate the template.
- Delivered in both MS Word and PDF Formats
- Document is 14-pages in length (including a “Certificate of Formation” establishing adoption of the operating agreement by the members and an exhibit providing specific information about the members)
- Compatible with both PC and Mac
- Available for download on desktop and mobile
- Comes with a “draft” version complete with drafting tips and notes
- Easily customizable with your brand colors and logo
- Ready for upload into any electronic signature platform
This template includes the following:
- A provision that sets forth the general information about the company including the company’s , manager, registered agent, principal address and purpose
- A clause detailing how members (owners) may be added to or removed from the company
- A clause that provides members with a first right of refusal for any members selling his/her interest in the company
- A provision that relieves members from personal liability for any acts performed while carrying out the activities of the company
- Rules for voluntary withdrawal or resignation by a member
- A non-compete provision prohibiting leaving members from participating in competing businesses
- Some other legal stuff that makes this agreement super legit
Who should use this template?
- Limited liability companies with more than one owner.