- 1 Free Download Printable Operating Agreement Template (Excel, Word, and PDF)
- 2 What Is An Operating Agreement?
- 3 Reasons Why Providing An Operating Agreement Is Good
- 4 How To Make An Operating Agreement?
Free Download Printable Operating Agreement Template (Excel, Word, and PDF)
Maybe you often hear the Single-Member LLC or known as SMLLC. This is actually a sole proprietorship but it has benefits that this single owner can limit the liability yet still can act like the real business. To have this benefit, the owner should have the same type of document just like the Limited Liability Company owners have. Therefore, on this page we provide the operating agreement template for free.
What Is An Operating Agreement?
The operating agreement describes several sets of the agreement among the members (of a business) and operation of the LLC itself. This is because the owner is around 2-3 members, so an operating agreement is required.
The use of an operating agreement is suggested because it has a similar function the by-laws that will guide the directors and make a measurable partnership agreement. In this case, keep in mind that by-laws are needed for the corporation, but in terms of the agreement you don’t need it. Also, the partnership agreement and operating agreement for the LLC works in a similar function.
Reasons Why Providing An Operating Agreement Is Good
It Describes The Organization
As we have mentioned at the early paragraph, the operating agreement describes the LLC operation as well as the terms and condition of business procedures. This agreement describes the clarification of funds where it will be distributed and contributed.
It Separates The Business and The Owner Personally
In the operating agreement, this will explain and clarify what will happen when the owner is unable to run the business or die. This document discusses the clause who will manage the LLC. This is important to do to avoid any dispute in the future.
The Agreement Save The Business From Default State LLC Rules
Usually, states will set default rules that will require you to dispose of the business assets which is somehow harmful.
Help You Get A Hand from Attorney
There are many online services you can use to make the operating agreement. However, it is always better to ask the attorney to help you so you won’t miss out important clauses. Besides, the attorney will tailor your document for state requirements.
How To Make An Operating Agreement?
There are some information that should be included in the operating agreement, including:
- Definition – In this section will discuss major terms, abbreviations and the specific meanings. For example, when you discuss specific meaning, you might need to discuss “fiscal year”.
- Name for the limited liability company
- The term of the LLC – Usually, the term of the LLC is designed to be “per perpetual” in case it is designed in a number of years.
- The formation date
- The purpose why the LLC was formed
- Contributions – It includes the contribution of the member including cash, personal properties until intellectual properties
- Liability of the members
- The procedures of admitting new members
- Dissolution and Termination
- Miscellaneous Provisions
To make your time effective, we already provide operating agreement templates on this page. You can download it for free and start making an operating agreement as you need.
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