Operating Agreement

Description

If you’re starting an LLC (limited liability company), then you’ve probably heard about an operating agreement.

Think of an operating agreement as a roadmap for your business. It’s a legal document that describes who owns the business, how the business will be managed, and how to handle the business’s money.

However, not all businesses are the same. So, this operating agreement template comes in 2 versions.

The first version is a single-member LLC operating agreement. It applies to all businesses with a single member. A member is just another name for an LLC owner. So, anyone who starts an LLC is a member.

The second version is a multi-member LLC operating agreement template. It applies to all businesses with at least 2 members.

This LLC agreement template has all the essentials. It also includes alternatives, such as including the option to split the profits and losses in any amount or percentage.

You can also choose between a member-managed and a manager-managed LLC. By default, most states would say that an LLC is managed by the member(s). However, if you want managers to perform the day-to-day operations of the business, you can choose this option instead.

Of course, getting paid is a big part of starting a business. So, this LLC membership agreement includes the language to allow salaries for members (or not allow it at all).

Some owners may think sharing profits is enough, which means no salary is necessary. And some owners may think salaries should be given in addition to sharing the profits. Regardless, you have the option to make either choice.

Last, but certainly not least, the multi-member LLC operating agreement includes a free bonus: a Right of First Refusal Agreement (worth $199). A right of first refusal can be used in an LLC agreement to require a member, who has received an offer from a third party to purchase all or any portion of its membership interests in a company, to first offer those membership interests to the Other Members.

So, if an LLC member dies, you normally would be stuck with whoever inherits that deceased member’s ownership in the company. With a Right of Refusal Agreement, the remaining members have first dibs and get the option to buy that piece of ownership before anyone else.

This LLC agreement can be used for any of the following states:

1. Alabama
2. Alaska
3. Arizona
4. Arkansas
5. California
6. Colorado
7. Connecticut
8. Delaware
9. Florida
10. Georgia
11. Hawaii
12. Idaho
13. Illinois
14. Indiana
15. Iowa
16. Kansas
17. Kentucky
18. Louisiana
19. Maine
20. Maryland
21. Massachusetts
22. Michigan
23. Minnesota
24. Mississippi
25. Missouri
26. Montana
27. Nebraska
28. Nevada
29. New Hampshire
30. New Jersey
31. New Mexico
32. New York
33. North Carolina
34. North Dakota
35. Ohio
36. Oklahoma
37. Oregon
38. Pennsylvania
39. Rhode Island
40. South Carolina
41. South Dakota
42. Tennessee
43. Texas
44. Utah
45. Vermont
46. Virginia
47. Washington
48. West Virginia
49. Wisconsin
50. Wyoming

About this template:

The single-member LLC operating agreement is 5 pages. The multi-member LLC operating agreement template is 8 pages. These templates can be uploaded to are in Word format.

You will receive your documents immediately. You can access your documents via the order confirmation page or your email.

*Special instructions: Please download the document(s) immediately. The download link(s) will expire after you download it three (3) times OR after 30 days from your purchase date, whichever happens first.

This template includes: 

• Paragraph(s) that describes the Company’s addresses, articles of organization (or LLC formation paperwork), and registered agent
• Paragraph(s) that describes how long the Company will last or remain active
• Paragraph(s) that describe the member’s liability (or legal responsibility) if the business is sued
• Paragraph(s) that describe if the LLC will be managed by members or managers
• Paragraph(s) that describes what powers the managers do and don’t have
• Paragraph(s) that allow for a member to transfer (or sell) their ownership in the company
• Paragraph(s) that describe the banking information for the LLC
• Paragraph(s) that describe the accounting records for the LLC
• Paragraph(s) that describe how to terminate (or end) the LLC and/or what would happen if the LLC went out of business
• Paragraph(s) that describes how to sell the business’s assets, e.g., property if the company goes out of business
• Paragraph(s) that describes how (or where) to handle any disputes regarding the agreement
• Paragraph(s) that describes how much money each member will invest in the business and/or what property each member will invest in the business (2+ owners agreement only)
• Paragraph(s) that describes how to handle the money each member invested  (2+ owners agreement only)
• Paragraph(s) that describe how to split the profits and losses between the members (2+ owners agreement only)
• Paragraph(s) that describe how much salary a member can (or can’t) receive (2+ owners agreement only)
• Paragraph(s) that describe how to handle the interest on the original investment money for each member (2+ owners agreement only)
• Paragraph(s) that describe the rights of those who receive ownership in the company via a transfer (2+ owners agreement only)
• Paragraphs(s) that give existing members the option to buy ownership first before it’s transferred to a third party (aka right of refusal) (2+ owners agreement only)
• Paragraph(s) that describes how to continue a business if it ends using certain exceptions, e.g., remaining members want to keep the business going (2+ owners agreement only)

What’s included:

Operating Agreement Template + Plain-English Guide

• Template:
  • 5 page Operating Agreement Template (Word format) for a business with 1 owner
  • 8 page Operating Agreement Template (Word format) for a business with 2+ owners
  • 3 page Right of First Refusal Agreement (Word format) ($199 Value): free bonus included in the 2+ owners agreement only
• C.I.T.E. Guide: the Contract Instructions and Thorough Explanations Guide explains the highlighted fields of the template and provides a Plain-English translation for all the legal terms.

Refunds:

We pride ourselves on delivering the best product possible. And we also stand by our products. So, if for any reason you’re not happy with the purchase, we would love for the opportunity to make it right, even if that means a full refund. We will guarantee a refund if it’s within 14 days of the purchase date. Please visit our Refund Policy for more information.