calendar template

Free Printable Bill Payment Template

Free LLC Operating Agreement Template (2023) Free LLC Operating Agreement Template (2023) – Forbes Advisor

Jacqueline Nguyen is a Florida Attorney who translates complex business and tax laws into easy-to-digest information for entrepreneurs looking to start or expand their businesses.

Free Bill Tracker Printable  Day Designer
Free Bill Tracker Printable Day Designer

Jacqueline Nguyen, Esq.

Jacqueline Nguyen is a Florida Attorney who translates complex business and tax laws into easy-to-digest information for entrepreneurs looking to start or expand their businesses.

FREE Bill Payment Checklist PDF - World of Printables  Bill
FREE Bill Payment Checklist PDF – World of Printables Bill

Contributor

Kelly is an SMB Editor specializing in starting and marketing new ventures. Before joining the team, she was a Content Producer at Fit Small Business where she served as an editor and strategist covering small business marketing content. She is a former Google Tech Entrepreneur and she holds an MSc in International Marketing from Edinburgh Napier University. Additionally, she manages a column at Inc. Magazine.

Free Printable Bill Tracker - Paper Trail Design
Free Printable Bill Tracker – Paper Trail Design

Kelly Main

Kelly is an SMB Editor specializing in starting and marketing new ventures. Before joining the team, she was a Content Producer at Fit Small Business where she served as an editor and strategist covering small business marketing content. She is a former Google Tech Entrepreneur and she holds an MSc in International Marketing from Edinburgh Napier University. Additionally, she manages a column at Inc. Magazine.

Updated: Nov 1, 2023, 10:26pm

Monthly Bill Organizers -  Free Printables  Printabulls
Monthly Bill Organizers – Free Printables Printabulls

Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors’ opinions or evaluations.

Table of Contents

Show more

An LLC Operating Agreement is a legal document that details the rules and regulations of a Limited Liability Company (LLC) with regards to financial and functional decisions. It covers everything from the rights and responsibilities of members, how profits and losses are allocated, and voting rules to management duties and more. Granted, creating one can be a challenge so we created a free LLC operating agreement to help you get started.

Service Time

Varies By State & Package

Service Time

Varies By State & Package

Service Time

Varies By State & Package

What Is an LLC Operating Agreement?

An operating agreement, also known in some states as a limited liability company (LLC) agreement, is a contract that describes how a business plans to operate. Think of it as a legal business plan that reads like a prenup. It includes terms on managing the business, sharing profits and losses, and how to close the business.

Free LLC Operating Agreement Template When Is an LLC Operating Agreement Necessary? 1. State Mandated

Since LLCs are regulated by state statutes, whether you need an operating agreement will depend on your state. Most states do not require an operating agreement but always recommend it. Below is a list of states that require an operating agreement.

California. California requires an LLC to have an operating agreement. However, this agreement does not have to be in writing. It can be oral or implied. Delaware. Delaware refers to the operating agreement as a limited liability company agreement and requires LLCs to have one. The agreement can be drafted when the LLC is formed or after. Maine. Maine refers to the operating agreement as a limited liability company agreement and requires LLCs to enter into one either before or after the formation of the LLC. Missouri. Missouri requires LLCs to enter into an operating agreement as part of its statute regarding LLCs but does not say when the agreement must be drafted. New York. New York requires a written operating agreement to be drafted before, during or within 90 days of forming an LLC. However, the laws are silent regarding the consequences of not having an operating agreement. 2. Avoid Default Rules

You will be subjected to the state’s default rules if you do not execute an operating agreement. All states have some form of LLC act that details all the rules regarding an LLC. Most default rules are written to allow equitable distribution and power between the members. This can be fine, but if you and your members want something different, you will need an operating agreement to detail that.

3. Multi-Member LLC

While it’s advised to have an operating agreement if you are a single-member LLC, it’s necessary when you have multiple members. This is necessary because you may have different rights for different members. Without an operating agreement, you would have to rely on your state’s default rules which could conflict with your intentions.

Some of the rights an operating agreement will address are:

Determining ownership percentage Capital contributions Voting rights Duties and responsibilities of the members Distribution of profits and losses Death, disability and buyouts of members Adding new members Start an LLC Online Today With ZenBusiness

Click on the state below to get started.

Start Now

Benefits of a Strong Operating Agreement

A solid operating agreement provides many benefits. Two of those benefits are:

Protects Business Liability Status

This is critical for single-member LLCs as they are often treated as passed-through entities, meaning that you don’t have to file a separate tax return for your business. This can create confusion regarding what assets are business and personal. An operating agreement allows you to create a structure that shows your intent to keep the assets separate and will enable you to protect your personal ones from your business. This is also important for multi-member LLCs as you want to ensure your liability is limited to only the business so another member’s actions can’t jeopardize your personal assets.

Clarifies Any Oral Agreements and Offers a Structure for Growth

A solid operating agreement enables complete clarity on the company’s intent and ensures everyone is on the same page to allow businesses to grow. Also, if any issues arise, operating agreements allow clarity on resolving the problems as they detail how to handle someone leaving or adding or voting on changes.

Frequently Asked Questions (FAQs) What is an LLC operating agreement?

An LLC operating agreement is a document that determines business and financial decisions and key member roles. Some states require operating agreements before approving an LLC’s formation.

Do I have to draft an operating agreement?

You must have an operating agreement if your LLC is registered in California, Delaware, Maine, Missouri or New York. An operating agreement is recommended but not required if your LLC is registered in a different state.

How do operating agreements protect personal assets?

Operating agreements show your intent to create a separate structure from your personal assets. This will help protect your personal assets from any business liability.

What’s the difference between an LLC and a corporation?

An LLC is owned by members, while shareholders own corporations. Corporations are often subject to additional taxes while LLCs may be claimed on one’s personal tax documents.

Was this article helpful?

Share your feedback

Thank You for your feedback!

Something went wrong. Please try again later.

Information provided on Forbes Advisor is for educational purposes only. Your financial situation is unique and the products and services we review may not be right for your circumstances. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities. Performance information may have changed since the time of publication. Past performance is not indicative of future results.

Forbes Advisor adheres to strict editorial integrity standards. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. The opinions expressed are the author’s alone and have not been provided, approved, or otherwise endorsed by our partners.

Jacqueline Nguyen is a Florida Attorney who translates complex business and tax laws into easy-to-digest information for entrepreneurs looking to start or expand their businesses.

Are you sure you want to rest your choices?

cancel ok

‘; } else if ( sectionCount – 1 === i ) { html += ”; }else{ html += ”; } } var rightRailDfp = document.querySelector(selectors.rightRailDfp); if(!!rightRailDfp){ rightRailDfp.innerHTML = html; } } } / This function will generate top ed placeholder / function generateTopEdPlaceholder(){ var top = util.createElement(‘div’,{ “class”:’top-ed-placeholder’, }); util.insertBefore(top,util.$qs(selectors.articleWrapper)); }; / This function will generate mobile sticky ed placeholder / function generateMobileStickyEdPlaceholder(){ var bottom = util.createElement(‘div’,{ “class”:’mobile-sticky-ed-placeholder’, }); util.insertAfter(bottom,util.$qs(selectors.articleWrapper)); handleNotices(bottom); }; function handleNotices(bottomStickyElement){ if(!!bottomStickyElement){ var stickyHeight = bottomStickyElement.offsetHeight; stickyHeight = ( stickyHeight > 0 )? stickyHeight : 0; var notices = util.$qs(‘.notices’); if (notices) { notices.style.bottom = stickyHeight + “px”; } } } / This function will generate placehoders / function generateIncontentPlaceholders(){ var parentWrapper = document.querySelector(selectors.articleBody); var paras = parentWrapper.querySelectorAll(‘p’); var dataIndex = 0; var initialLoad = true; var initialLoadCount = 0; var validParagraphCount = 0; var maxCharacterLength = 150; for(var i = 0 ; i < paras.length ;i++){ var currentPara = paras[i]; var text = currentPara.textContent || currentPara.innerText; var excludeCurrentPara = currentPara.getAttribute(‘data-ed-excluded-el’); if( text.length > maxCharacterLength && excludeCurrentPara === null ){ validParagraphCount++; } if( ( initialLoad && validParagraphCount === 2 ) || validParagraphCount === 4 ){ initialLoadCount++; if( initialLoadCount === 2 ){ initialLoad = false; } var wrapper = util.createElement(‘div’,{ “class”:’article-row’, “data-page”:0, “data-index”:dataIndex, }); wrapper.appendChild( util.createElement(‘div’,{class:posData.inlineArticle.placeholder}) ); util.insertAfter( wrapper, currentPara ); dataIndex++; validParagraphCount = 0; } } } / This function will generate incontent ed placeholder for dfp shortcode / function generateIncontentShortcodePlaceholder() { var stl = “text-align:center;margin:10px 0;”; if (deviceType === 3) { stl += “margin-right:-15px;margin-left:-15px;”; } var shortcodePlaceholder = util.createElement(‘div’, { “class”: posData.showDfpShortcode.placeholder, “style”: stl }); var el = util.$qs(selectors.showDfpShortcode); if (!!el) { el.appendChild(shortcodePlaceholder); } } / This function will return array of elements for exclusion elementSelectors : [‘.faqs’,’.someothersection’] return [div.faq,div#something]; / function getSectionsDomElementsToExclude(elementSelectors){ var allElements = []; if( Array.isArray(elementSelectors) && elementSelectors.length > 0 ){ elementSelectors.forEach(function(elSelector){ var els = document.querySelectorAll(elSelector); if( els.length > 0 ){ for( var i = 0; i < els.length ; i++ ){ allElements.push(els[i]); } } }); } return allElements; } / This function will add exclusion attribute / function addEdExclusionDataAttribute(els){ var noOfElements = els.length; if( !!els && noOfElements > 0 ){ for( var i = 0 ; i < noOfElements ; i++ ){ els[i].setAttribute(‘data-ed-excluded-el’,true); } } } / This function adds exclusion attribute to elements found in exclusion section / function addExlusionAttribute(callback){ var allSectionstoExclude = getSectionsDomElementsToExclude(selectors.excludeSections); if( Array.isArray(allSectionstoExclude) && allSectionstoExclude.length > 0 ){ allSectionstoExclude.forEach(function(section){ var paras = section.querySelectorAll(‘p’); addEdExclusionDataAttribute(paras); }); } if( typeof callback === ‘function’){ callback(); } } / This function will generate dfp yhs shortcode placeholder / function generateShowDfpYhsPlaceholder(){ var el = util.createElement(‘div’,{ “class”:posData.showDfpShortcode.placeholder, }); var targetElement = util.$qs(shortcodePosData.inread.selector); if( !!targetElement ){ targetElement.appendChild(el); } } / This function will generate dfp yhs shortcode placeholder / function loadShowDfpYhsUnit(){ if( !!util.$qs(shortcodePosData.inread.selector) ){ loadSingleUnit([‘inread’], 0, null); } } / This function will generate placehoders for template based on device / function generateTemplatePlaceHolders(){ if( deviceType !== 3 ){ generateTopEdPlaceholder(); generateRightRailPlaceholders(); }else{ generateMobileStickyEdPlaceholder(); addExlusionAttribute(generateIncontentPlaceholders); } generateIncontentShortcodePlaceholder(); generateShowDfpYhsPlaceholder(); } generateTemplatePlaceHolders(); / Set the placeholder height of lazy loaded units / function setMobilePlaceholdersHeight() { googletag.cmd.push(function () { googletag.pubads().addEventListener(‘slotRenderEnded’, function(event) { var slotEl = document.querySelector(‘#’ + event.slot.getSlotElementId()).parentElement; var slotHeight; if (event.size && event.size[1] !== 0) { slotHeight = event.size[1] + ‘px’; } else { slotHeight = ‘auto’; } if (!!slotEl) { slotEl.style.height = slotHeight; } }); }); } //handle sticky top var isSticky = false; var isStickyDone = false; function handleTopEdScroll(){ var topEd = document.querySelector(selectors.topEd); var headerHeight = document.querySelector(selectors.header).offsetHeight; var offset = window.pageYOffset || document.documentElement.scrollTop; if(topEd){ var scrollOffset = topEd.offsetTop; if(!isSticky){ if(topEd.classList.contains(‘top-ed-placeholder–sticky’)){ isSticky = true; } if( offset > scrollOffset ){ topEd.classList.add(‘top-ed-placeholder–sticky’); if (document.querySelector(“.regular-template”)) { document.querySelector(“.regular-template”).style.paddingTop=topEd.offsetHeight+”px”; } else if (document.querySelector(“.guides-template”)) { document.querySelector(“.guides-template”).style.paddingTop=topEd.offsetHeight+”px”; } } setTimeout(function(){ topEd.classList.remove(‘top-ed-placeholder–sticky’); if (document.querySelector(“.regular-template”)) { document.querySelector(“.regular-template”).style.paddingTop=”0″; } else if (document.querySelector(“.guides-template”)) { document.querySelector(“.guides-template”).style.paddingTop=”0″; } isStickyDone = true; },5000); }else{ if(!isStickyDone){ topEd.style.top = `${headerHeight}px`; } } } this.oldScroll = this.scrollY; } window.addEventListener(‘scroll’,debounce(handleTopEdScroll,250)); //dfp setup window.dfpConfig = { 1: { ‘recx’ : { ‘size’: posData.rail.sizes, ‘cssClass’: posData.rail.placeholder }, ‘top’ : { ‘size’: posData.top.sizes, ‘cssClass’: posData.top.placeholder }, ‘inread’ : { ‘size’: posData.showDfpShortcode.sizes, ‘cssClass’: posData.showDfpShortcode.placeholder }, }, 2: { ‘recx’ : { ‘size’: posData.rail.sizes, ‘cssClass’: posData.rail.placeholder }, ‘top’ : { ‘size’: posData.top.tabletSizes, ‘cssClass’: posData.top.placeholder }, ‘inread’ : { ‘size’: posData.showDfpShortcode.sizes, ‘cssClass’: posData.showDfpShortcode.placeholder }, }, 3: { ‘mobilerec’: { ‘size’: posData.inlineArticle.sizes, ‘cssClass’: posData.inlineArticle.placeholder }, ‘mobile’ : { ‘size’: posData.mobileSticky.sizes, ‘cssClass’: posData.mobileSticky.placeholder }, ‘inread’ : { ‘size’: posData.showDfpShortcode.sizes, ‘cssClass’: posData.showDfpShortcode.placeholder }, } }; generatePlaceHolders(null); initializeDFP(function(){ if( deviceType !== 3 ){ loadSingleUnit([‘top’], 0, null); }else{ loadSingleUnit([‘mobile’], 0, null); setMobilePlaceholdersHeight(); } if(!!util.$qs(‘.’+posData.showDfpShortcode.placeholder)){ loadSingleUnit([‘inread’], 0, null); } loadShowDfpYhsUnit(); lazyLoadSlots(0,[0,1]); }); initDFPScrollhandler(function(direction, currentRowIndex, pageIndex){ var rowOffset = 1 direction; var nextDfpRowIndex = parseInt(currentRowIndex) + rowOffset; lazyLoadSlots(pageIndex, [parseInt(currentRowIndex), nextDfpRowIndex]); }, true); function adjustHeightGap() { let leftRail = document.querySelector(selectors.leftRailWrapper), righRail = document.querySelector(selectors.rightRailWrapper); if(leftRail && righRail){ let leftRailHeight = leftRail.offsetHeight, righRailHeight = righRail.offsetHeight, heightDiffernce = righRailHeight – leftRailHeight, articleRow = document.getElementsByClassName(“article-row”), articleRowCount = document.querySelectorAll(‘.article-row’).length, heightDeduction = heightDiffernce / articleRowCount; if (righRailHeight > leftRailHeight) { Array.from(articleRow).forEach(function (elem) { var getheight = elem.offsetHeight; elem.style.height = (getheight – heightDeduction) + “px”; }); } } } let scrollFired = 0; window.addEventListener(‘scroll’, debounce(function () { if (scrollFired == 0) { adjustHeightGap(); } scrollFired = 1; }, 1200)); The Forbes Advisor editorial team is independent and objective. To help support our reporting work, and to continue our ability to provide this content for free to our readers, we receive compensation from the companies that advertise on the Forbes Advisor site. This compensation comes from two main sources. First, we provide paid placements to advertisers to present their offers. The compensation we receive for those placements affects how and where advertisers’ offers appear on the site. This site does not include all companies or products available within the market. Second, we also include links to advertisers’ offers in some of our articles; these “affiliate links” may generate income for our site when you click on them. The compensation we receive from advertisers does not influence the recommendations or advice our editorial team provides in our articles or otherwise impact any of the editorial content on Forbes Advisor. While we work hard to provide accurate and up to date information that we think you will find relevant, Forbes Advisor does not and cannot guarantee that any information provided is complete and makes no representations or warranties in connection thereto, nor to the accuracy or applicability thereof. Here is a list of our partners who offer products that we have affiliate links for.