Documents

Operating Agreement

Operating Agreement

Outlines the governance and operations of an LLC, specifically defining profit sharing, ownership, voting rights and management, and ownership responsibilities and changes. The decision whether to form the company as a corporation or an LLC is a complex one and should be discussed with competent legal counsel before forming an entity.

Enter your info below to download the document free of charge.
 
{{dluser.message}}
View Other Documents Download 

An operating agreement is an agreement among the members of a limited liability company regarding the governance and management of the LLC’s business, and the LLC members’ financial and managerial rights and duties. The operating agreement document typically addresses the purpose of the company, the powers of the company and its management, treatment of capital contributions and distributions, guidelines for the allocation of profits and losses, and guidelines regarding management structure. In many states, LLCs are not required to have an operating agreement. Those LLCs operating without an agreement are governed instead by the state’s default rules contained in relevant statutes and developed through state court decisions. An operating agreement functions similar to corporate bylaws. In multi-member LLCs, the operating agreement is similar to a partnership agreement. In single-member LLCs, an operating agreement is a declaration of the structure that the member has chosen for the company and is sometimes used to prove in court that the LLC structure is separate from the individual owner.