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LLC Operating Agreement Generator

Write down how your LLC is owned and run: who the members are, what each put in, who owns what percentage, who manages the business, how votes work, and what happens when a member leaves or the company closes. Single-member and multi-member versions, free PDF in English or Spanish. It runs in your browser.

A starting point, not a substitute for your state's law.

Your state's LLC act fills in anything the agreement leaves out, and some of its rules cannot be changed by agreement. This is a self-help template, not legal advice. RecordingLaw.com is not a law firm.

Type of LLC
Company
Members and capital contributions

Type numbers with a period for decimals and no other symbols, for example 1500.50.

Member 1

Member 2

Total entered: 0%

Management and voting

Admitting a new member and amending the agreement always need every member’s written consent in this agreement.

Other terms

Still blank (these print as blanks you can fill in by hand):

  • LLC name
  • State of formation
  • Name of member 1
  • Name of member 2
  • Ownership % of member 1
  • Ownership % of member 2

Everything runs in your browser. Nothing you type is sent to or stored on our server.

Operating Agreement of [COMPANY NAME]

This Operating Agreement (the “Agreement”) of [COMPANY NAME] (the “Company”), a limited liability company organized under the laws of the State of [STATE], is made effective [DATE] by its members listed in Schedule A (each a “Member”).

1. Formation

The Company was formed as a limited liability company under the laws of the State of [STATE]. The rights and obligations of the Members are governed by this Agreement and, for matters this Agreement does not address, by the limited liability company law of the State of [STATE] (the “Act”). If any provision of this Agreement conflicts with a provision of the Act that cannot be changed by agreement, the Act controls.

2. Name, Office, and Purpose

The name of the Company is [COMPANY NAME]. Its principal office is [ADDRESS], or any other place the Members designate. The purpose of the Company is to engage in any lawful business for which a limited liability company may be organized.

3. Members and Capital Contributions

The Members and their initial capital contributions are listed in Schedule A. No Member is required to make any additional capital contribution unless all Members agree in writing. No Member earns interest on a capital contribution or may withdraw it except as this Agreement provides.

4. Ownership Percentages

Each Member’s ownership percentage (“Percentage Interest”) is stated in Schedule A. Percentage Interests change only by a written amendment signed by all Members, or by a transfer or admission made under this Agreement.

5. Management

The Company is member-managed. The Members manage the business and affairs of the Company. Any Member may act for the Company in the ordinary course of its business, but no Member may take a Major Decision (Section 6) without the vote that Section 6 requires.

6. Voting and Major Decisions

Unless this Agreement says otherwise, a decision of the Members requires the approval of Members holding more than 50 percent of the Percentage Interests. The following “Major Decisions” require the written approval of Members holding all of the Percentage Interests: (a) selling, leasing, or otherwise disposing of all or substantially all of the Company’s assets; (b) merging or converting the Company; (c) borrowing money or guaranteeing a debt outside the ordinary course of business; (d) amending the Company’s articles or certificate of organization; and (e) dissolving the Company. Admitting a new Member (Section 10) and amending this Agreement (Section 14) are not Major Decisions: each requires the written consent of all Members. Members may act without a meeting by written consent signed by the Members holding the required Percentage Interests.

7. Allocations and Distributions

The Company’s profits and losses are allocated to the Members in proportion to their Percentage Interests. Distributions of cash or property are made to the Members in proportion to their Percentage Interests, at the times and in the amounts approved under Section 6. No distribution may be made if it is prohibited by the Act, including a distribution that would leave the Company unable to pay its debts as they come due.

8. Capital Accounts, Books, and Records

The Company will keep complete books and records of its business and a capital account for each Member. The fiscal year of the Company ends on December 31. Each Member may inspect and copy the Company’s books and records at a reasonable time and on reasonable notice. The Company will keep its funds in accounts in its own name and will not commingle them with the funds of any Member.

9. Transfers of Membership Interests

No Member may sell, assign, give, pledge, or otherwise transfer all or part of the Member’s membership interest without the written consent of all other Members. Before transferring an interest to anyone who is not a Member, the transferring Member must first offer it in writing to the other Members on the same price and terms. The other Members have 30 days after receiving the offer to accept it, in proportion to their Percentage Interests or as they otherwise agree. If they do not accept it in full, the transferring Member may transfer the interest to the proposed buyer on terms no more favorable to the buyer, subject to the consent this Section requires. A transferee who is not admitted as a Member under Section 10 receives only the right to receive distributions the transferor would have received and has no right to vote or take part in management, except as the Act otherwise requires. A transfer that violates this Section is void to the extent the Act allows.

10. New Members

A new Member may be admitted only with the written consent of all Members, on terms (including any capital contribution and the resulting Percentage Interests) stated in a written amendment to Schedule A signed by all Members, including the new Member.

11. Withdrawal, Death, or Incapacity of a Member

A Member may withdraw from the Company only with the written consent of the other Members. If a Member dies, becomes legally incapacitated, or withdraws, the Company continues unless the remaining Members decide under Section 12 to dissolve it. The remaining Members and the departing Member (or the Member’s legal representative) will negotiate in good faith any purchase of the departing Member’s interest; until a purchase is completed, the departing Member’s successor holds only the right to receive distributions, except as the Act otherwise requires.

12. Dissolution and Winding Up

The Company will be dissolved on the written approval of Members holding all of the Percentage Interests, or on any event that requires dissolution under the Act. On dissolution, the Members (or the Managers, if the Company is manager-managed) will wind up the Company’s affairs: collect its assets, pay or make reasonable provision for its debts and obligations, including debts owed to Members who are creditors, and then distribute the remaining assets to the Members in accordance with their positive capital account balances and then in proportion to their Percentage Interests. The Company will file any articles or certificate of dissolution or cancellation the Act requires.

13. Limited Liability and Indemnification

No Member or Manager is personally liable for a debt, obligation, or liability of the Company solely because of being a Member or Manager, except as the Act provides or as that person agrees in a separate signed writing. To the extent the Act permits, the Company will indemnify and hold harmless each Member and Manager against losses and expenses arising from acts taken in good faith on behalf of the Company, other than acts involving fraud, willful misconduct, a knowing violation of law, or a breach of this Agreement.

14. General Provisions

This Agreement is the entire agreement of the Members about the Company and replaces any earlier agreement on the same subject. It may be amended only in a writing signed by all Members. It is governed by the laws of the State of [STATE]. If any provision is found unenforceable, the rest of this Agreement remains in effect. This Agreement binds and benefits the Members and their permitted successors and assigns. It may be signed in counterparts.

Schedule A: Members, Capital Contributions, and Percentage Interests

Member | Address | Initial capital contribution | Percentage Interest

[MEMBER 1] | ____________ | none stated | ____%

[MEMBER 2] | ____________ | none stated | ____%

MEMBER 1

Signature: ______________________________ Date: ____________

Printed name: ______________________________

 

MEMBER 2

Signature: ______________________________ Date: ____________

Printed name: ______________________________

 

Before you sign

This agreement is a starting point written for a small company. Your state’s LLC act supplies rules for anything the agreement does not cover, and some rules in the act cannot be changed by agreement. Read your state’s act, or have a lawyer review the agreement, before you rely on it.

Keep the signed agreement with the company’s records.

Taxes: this agreement makes no tax election. The IRS says that, unless the LLC elects otherwise, an LLC with only one member is treated as an entity disregarded as separate from its owner for income tax purposes, and a domestic LLC with at least two members is classified as a partnership (irs.gov, Limited Liability Company page). Talk to a tax professional before you make or skip an election.

If you choose manager-managed, check whether your state’s articles or certificate of organization must say so, and keep the two documents consistent.

Every member should sign. Keep a signed copy with the company’s records and give each member a copy. Update Schedule A whenever ownership changes.

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