How to File an LLC Operating Agreement
Limited liability corporations (LLCs) are a great way to shelter your personal assets from business related liabilities. Preparing a document called the Articles of Organization is the first step. All states have their own version of this which is usually available for download on each state's website. However, you will also need to file an Operating Agreement which will provide detail about the members of the Corporation (even if you're the only member). This article will provide you with a sample Agreement. It will also advise on the information you need to gather before starting the Agreement and provide some tips on how to list members and ownership.
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Instructions
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Limited Liability Corporation Operating Agreement
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1
Understand the difference between an Operating Agreement and the Articles of Organization. The Operating Agreement is an agreement between all owners of the LLC and does not need to be filed. It is simply a document that outlines all the terms and how the owners will interact as members of the LLC. It is important to note that the Operating Agreement does not have to be filed with the governing jurisdiction as do the Articles of Organization.
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2
Download a sample LLC Operating Agreement (see Resources). Templates provide a good way to make sure you've included everything. While it may seem very "legal" it is important to understand each step.
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3
Gather all relevant information. This includes the name of the company, the location, member names and the physical address of contributing members. You must include all members in the Operating Agreement.
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4
Define ownership. Members can hold anywhere from 1 to 100% of ownership. LLCs can be owned by a single entity or multiple members.
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5
Assign a Registered Agent. In most cases, this can be you or another member listed in Step 4. Each state will have its own requirements, so it is important to check with your jurisdiction.
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Print out the Agreement and have all members sign. The sample might not include the right number of signatures, so you will need to add or subtract lines for your specific situation.
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Tips & Warnings
The information in this article is not to be taken as a legal opinion.
