LLC Operating Agreement

An LLC Operating Agreement is the foundational governance document for any limited liability company. While many states don't legally require one, having a comprehensive operating agreement is essential for establishing clear rules, protecting limited liability status, and preventing member disputes. It defines how your LLC will be owned, managed, and operated.

This detailed template addresses all key aspects of LLC governance: member identification and ownership percentages, capital contributions and additional funding, profit and loss allocation formulas, distributions and draw policies, management structure (member-managed vs. manager-managed), voting rights and procedures, meeting requirements, admission of new members, member withdrawal and transfer of interest, dissolution and liquidation procedures, indemnification of members and managers, and amendment procedures.

The agreement protects your limited liability status by demonstrating that your LLC is a separate entity operated according to formal procedures. Without an operating agreement, state default rules apply, which may not align with your intentions and can lead to unwanted outcomes.