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LLC Operating Agreement

Internal governance document for an LLC that defines member rights, profit distribution, management structure, and procedures for adding or removing members.

Instructions

Instructions

  • Company Information: Enter the LLC name, state of formation, and date of organization
  • Members: List all members with their ownership percentages and capital contributions
  • Management Structure: Define whether the LLC is member-managed or manager-managed
  • Distributions: Set the schedule and method for distributing profits to members
  • Voting: Specify voting rights (typically proportional to ownership)
  • Transfer Restrictions: Define rules for selling or transferring membership interests
  • Dissolution: Outline the events that trigger dissolution and the wind-down process
  • Note: Even single-member LLCs should have an operating agreement. It strengthens liability protection.