Multi member LLCS are common, but their operating agreements can quickly become complicated. This template was converted from the exact operating agreement that I use in my own business, and takes into account distributions, additions of members, tax considerations, and more. I’ll be entirely upfront with you: this is the most complicated template I have in the shop. However, any time you are dealing with multiple members of a company, you must make sure that all of your i’s are dotted and t’s are crossed; this is not a time to take the simple route.
WHAT DOES THIS TEMPLATE COVER?
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Parties entering into the agreement, the name of the company, it’s purpose and it’s address
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Definitions of important terms
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How capital contributions by the members will be made, how much, and how capital will be handled within the company
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What happens if a member wishes to withdraw from the company and what happens to their capital contribution
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How often distributions of cash are made, and how distributions of property is handled
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Policies on management and operation of the business, including appointment and removal of managers, manager authority and limitations on it
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What outside activities members of the company may partake in
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Statement on the limitation of liability of managers
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Statement on the rights member have relating to the company and the restrictions of power the members have
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How books, records and accounting will be handled, as well as when the fiscal year takes place
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How the corporation elects to be taxed
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Policies around the transfer of units by a member and restrictions on transfers
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How admission of substitute and additional members will be handled
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When members may be disqualified from the company death, resignation, bankruptcy, etc.) and what happens in the circumstance with that members units
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How liquidation and winding up of the company would occur, as well as the return of capital to members
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What majority of member votes are needed to make amendments to the operating agreement
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What Quorum is and how members may vote (in person or by proxy)
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General legal provisions including: Indemnification, binding effect, waiver, applicable law, power of attorney, and more
NOTE BEFORE YOU PURCHASE
This template is additionally available at The Creative Law Shop®, our contract shop for online business owners. At The Creative Law Shop®, you'll find more than 85 attorney-drafted contracts, peer-reviewed by industry professionals.
Why purchase here versus at The Creative Law Shop®? It's entirely up to you! The document listed here is the exact same as that available at The Creative Law Shop®. The only difference? At The Creative Law Shop®, we offer lifetime updates (currently not available at Fairway Stables), and host periodic sales.