Writing an Operating Agreement

HOW TO WRITE A MULTI-MEMBER AGREEMENT

Writing an Operating Agreement for your Multi-Member LLC is no small feat and should not be taken lightly.  Any time a group of people decide to go into business together, it’s fun and exciting, but it’s also BUSINESS.  An Operating Agreement will get everyone on the same page for every aspect of the business from ownership percentages to job assignments to financial authorizations and what happens if a member leaves.  Everything possible should be included in this document.  It is an internal document that does not get filed with any government entity, but notarizing it is a great idea and every member should have a notarized copy of this document for their records.

If you’ve decided to be brave enough to attempt this on your own, you can download a template at the bottom of this page.  Follow Steps below

Step 1 – Header – Enter the State where the LLC is located followed by the formation date and the members’ full name.

Step 2 – Section 1.1 (Formation) – Enter the effective date (month, day, year), the company name, and the State laws are pursuant.

Step 3 – Section 1.2 (Name) – Company Name.

Step 4 – Section 1.3 (Purpose) – The lawful purpose and the State.

Step 5 – Section 1.5 (Registered Agent) – Enter the full name  of the registered agent and the address.

Step 6 – Section 1.6 (Term) – Enter the date the LLC was formed.

Step 7 – Section 10.2 (Governing Law) – The State of Governing Law.

Step 8 – Signature Area by all Members

Schedule 1 – List all the members of the company.

Schedule 2 – List the capital contributions (investments) made by all members.

Schedule 3 – Enter the valuation of all the members’ interests.

Notary Acknowledgment – Before signing any part of the agreement it should be signed in the presence of a notary public.

Feel Free to download the sample template below:

Multi-Member-LLC-Operating-Agreement-Template

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