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1. Answer a number of
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2. View your customized Operating Agreement

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Create Your LLC Operating Agreement Checklist

1. Decide a name for your LLC
2. Principal Office
3. Registered Agent/Office
4. Initial members
5. Decide the ownership interests of each member
6. Decide the amount of capital each member will contribute.
7. Will any members be granted an interest solely for the performance of services?

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• Every limited liability company (“LLC”) should have an LLC Operating Agreement.
• The LLC Operating Agreement is the core document that is referred to when issues concerning the LLC need to be resolved.
• The LLC Operating Agreement is the most important document for your LLC.
• The LLC Operating Agreement reflects the agreement among the members with respect to the affairs and management of the LLC, essentially governing the relationship among the members of the LLC.
• It describes the business and economic arrangement of the members.
• The LLC Operating Agreement does not have to be filed with any state agency.
• All states will enforce valid Operating Agreements entered into among LLC members.

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• By having an LLC Operating Agreement, the members will be provided with a clear set of rules that all members have agreed upon, greatly reducing the likelihood of disagreements between members in the future.
• Without the formality of an agreement, the basic operation of the LLC would be governed by state law, which may not be advantageous to the LLC, it members, or the business it conducts.
• Without an operating agreement, the owners will be poorly-equipped to settle misunderstandings over the operations, finances, and management of the LLC.
• Without the formality of an agreement, a single member LLC can closely resemble a sole proprietorship, which does not limit your personal liability for business debts of the LLC.

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• It is extremely important to get a well drafted Operating Agreement immediately upon forming your LLC.

• You may get an Operating Agreement prior to forming your LLC. In fact, attorneys suggest that owners agree on the business terms of their deal and draft and Operating Agreement prior to spending money on forming an LLC.

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• The Operating Agreement should describe the business and economic arrangement of the members.

• In drafting a LLC Operating Agreement, the following general goals should be kept in mind:

   •The Operating   Agreement should   instruct owners   concerning the   operating and  management of the   LLC.

  •The Operating   Agreement should   address and  resolve all issues   concerning the   members (legal,   tax, and other).

  •The Operating   Agreement should   be customized to   the business and   owners.

  •The Operating   Agreement should   comply with all   federal income tax   laws and be   consistent with the   Articles of   Organization and   with mandatory   state statutory   rules

  •The Operating   Agreement should   be clear, use clear   language and   should be   understood by all  the members

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Related Articles

 Drafting an LLC Operating Agreement
 Amending your Operating Agreement
 Single Member LLC Operating Agreement
 Multi-Member LLC Operating Agreement
 Self Directed IRA LLC Operating Agreement
 Articles of Organization vs. LLC Operating Agreement
 LLC Tax Basics



 If my husband and I are the only 2 members of the LLC, do we need a single member or multi-member LLC Operating Agreement?
 If I already have an address in the state where I formed my LLC, can I use that address for my Registered agent/Office?
 If I am the only owner of the LLC, do I really need an Operating Agreement?
 Should I form my LLC before I get an Operating Agreement? 
 Can I use a standard LLC Operating Agreement for a Self-Directed IRA?
 What are Capital Accounts and why are they so important?

Disclaimer: The information provided in this site is not legal advice, but general information on legal issues commonly encountered. Neither myLLCoperatingagreement.com nor myLLCagreement.com is a law firm and neither is a substitute for an attorney or law firm. This site is not intended to create an attorney-client relationship, and by using myllcoperatingagreement.com or myLLCagreement.com, no attorney-client relationship will be created with myllcoperatingagreement.com or myLLCagreement.com.

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