So your LLC has been formed. You've decided you wish to have a written operating agreement and, now, are faced with determining exactly what goes into the agreement. Let's start with the basic elements.
- Name all the members.
- List the initial capital contribution required by each member.
- List what services, if any, are to be provided by each member
- Allocation of profits and losses.
Other recommended topics to be covered in an LLC operating include the following:
- Expulsion of a member.
- Admission of a new member.
- Withdrawal of a member.
- Death of a member.
- How LLC member voting is conducted.
- When the LLC is managed by managers, what matters are reserved for decision by the members.
- Restrictions upon sale of LLC interests to persons outside of the current ownership group.
- Restrictions upon LLC members participating in competing business ventures.
Sample LLC operating agreements: