How to Create a New Jersey Operating Agreement
In the state of New Jersey, a limited liability company's operating agreement will allow the members to govern on their own accord, as opposed to following state rules. If the members do not draft an operating agreement, the governance of the LLC defaults to the state's operating rules. For example, the operating agreement can specify a member as "manager," meaning only he has the authority to act on behalf of the company. If no operating agreement exists, New Jersey state law allows any member to act on behalf of the LLC.
Other People Are Reading
Instructions
-
-
1
Write the opening statement of the operating agreement. State the effective date of the agreement and the full, legal names of each of the members.
-
2
State the LLC's formation in the next section. Give the date of formation and the complete name of the LLC.
-
-
3
Indicate that the operating agreement is "pursuant to the Limited Liability Company Act of the state of New Jersey."
-
4
Create headings under separate numbers (e.g., 1.1, 1.2, 1.3) for the following information: name of the LLC, purpose, office or headquarters, registered agent (the designated representative for legal matters), term of the agreement and names and addresses of each member.
-
5
Insert sections for each matter you wish to cover in the agreement. There are no set requirements, but common areas include disbursement of profits and losses, contributions, indemnification, salaries, accounting, membership interests and the provisions for dissolving the company. The necessity of each will depend on the needs of the LLC.
-
6
Submit the agreement to each member for signatures. Even if only one member is designated as manager, the rest must sign to acknowledge her authority.
-
7
Provide copies of the agreement for each of the members and, if applicable, the LLC's attorney. A New Jersey operating agreement does not need to be filed with the state.
-
1
