Simple Llc Operating Agreement Free

If you`re starting a new limited liability company (LLC) with partners, it`s important to have an operating agreement in place. This agreement outlines the rights and responsibilities of each member and how the company will be managed. However, as a startup, you may not have the resources to hire an attorney to draft the agreement. That`s why it`s important to know that there are simple LLC operating agreement templates available for free online.

Before diving into the specifics of a simple LLC operating agreement, it`s important to first understand the purpose of this legal document. An operating agreement is essentially the roadmap for your LLC. It should include the following important details:

– The name and purpose of the LLC

– The members and their ownership percentages

– The roles and responsibilities of each member

– How profits and losses will be allocated

– How taxes will be paid

– How the LLC will be managed

– How decisions will be made

– The procedure for adding or removing members

– The procedure for dissolving the LLC

Without an operating agreement, your LLC is governed by state laws. This means that the default rules may not be in your best interest or align with your business objectives. A well-written operating agreement ensures that everyone is on the same page and can help avoid disputes down the road.

Now, let`s talk about simple LLC operating agreement templates that are free to use. There are many websites that offer downloadable templates, but it`s important to choose one that is specific to the laws of your state. Laws vary from state to state, so make sure you`re using a template that is tailored to your location.

Here is a general outline of what you can expect to find in a simple LLC operating agreement template:

1. Introduction

– The name of the LLC

– Date of formation

– Purpose of the LLC

2. Members

– List of all members and their ownership percentages

– Contributions made by each member

– Capital accounts of each member

3. Management and Voting

– How the LLC will be managed (by members or a designated manager)

– The decision-making process

– Voting rights of each member

– Quorum requirements for voting

4. Profit and Losses

– How profits and losses will be allocated among members

– Whether distributions will be made monthly, quarterly, or annually

5. Transfers and Buyouts

– Procedure for transferring ownership

– Procedure for selling the LLC

– Buyout rights of each member

6. Dissolution

– Procedure for dissolving the LLC

– Distribution of assets and liabilities upon dissolution

A simple LLC operating agreement should be straightforward, easy to understand, and customized to your specific needs. It`s important to review the agreement with all members to ensure everyone is in agreement and to seek legal advice if necessary.

In conclusion, a simple LLC operating agreement is a crucial document that outlines the rights and responsibilities of each member and how the company will be managed. While hiring an attorney can be expensive, there are free templates available online that can give you a good starting point. Just make sure to choose a template that is specific to the laws of your state and customize it to fit your needs.