What Is a Blank Operating Agreement for an LLC?
An operating agreement is a written agreement among members of a limited liability company (LLC) that governs their duties and obligations. A blank operating agreement is a generic document that covers the key provisions of an operating agreement.
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Content
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The topics normally included in a blank operating agreement include the name of the LLC and its members, their capital contributions, managerial powers, allocation of profits and losses, rules for adding new members, the LLC's term, business purpose and principal place of business, and procedural information regarding voting and record-keeping.
Benefits
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A blank operating agreement allows for the creation of an important legal document in a cost- and time-efficient manner. It is particularly beneficial to small businesses, especially single-member LLCs that do not require a detailed agreement tailored specifically for their company.
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Considerations
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A blank operating agreement does not address a complex set of interests or an unusual business or managerial structure. Additionally, because some states require an operating agreement as a part of the formation process of an LLC, a generic agreement might not comply with the statutes of a particular state.
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