The LLC operating agreement outlines ownership, management, profit distribution, and dispute resolution processes. While not mandatory in every US state, it remains crucial for smooth operation.
Download our LLC operating agreement template below or sign up to create a custom operating agreement using our free tool.
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We offer a customizable operating agreement tool as well as operating agreement templates for single-member LLCs and multi-member LLCs (including member-managed and manager-managed).
Create a custom operating agreement using our free tool. Just answer a few basic questions, and the tool will develop an operating agreement for your new LLC.
To use our tool, you will need to sign in to our Business Center. A Business Center account will also grant you access to many other free tools, special discounts on business services, and much more.
Our single-member LLC operating agreement template PDF was created for limited liability companies with only one member, where the sole member has full control over all affairs of the LLC and no other individuals have a membership interest in the company.
Download Single-Member LLC Template
Our multi-member LLC templates are meant for LLCs with more than one member. There are two types available: manager-managed and member-managed.
Download Member-Managed LLC Template PDF
Download Manager-Managed LLC Template PDF
Get Your Free state specific LLC Operating Agreement templates below, simply select your state.
An LLC operating agreement, known in some states as an LLC company agreement or limited liability company agreement, is a legal document that outlines the ownership and member duties of your limited liability company.
This agreement allows you to set out the financial and working relations among business owners ("members") and between members and managers.
LLC operating agreements are an internal document. This means that they are stored by the LLC owners and members and don’t need to be sent to the state or any other type of government agency.
The contents of an LLC operating agreement differ depending on the number of owners in your LLC.
If you are the sole owner of your business, then you need an operating agreement for a single-member LLC.
If your business has multiple owners, then you will need either a member-managed LLC operating agreement or a manager-managed LLC operating agreement.
Generally speaking, an operating agreement should address the following topics:
Although there are other minor topics that can be included in an operating agreement, these six sections are the most important.
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The significant protections offered by a written operating agreement make it a crucial document for any business.
If you are the sole LLC owner, creating an operating agreement brings credibility to your LLC. This helps to ensure courts uphold the limited liability status of your LLC by strengthening your corporate veil.
Without an operating agreement, a single-member LLC could look dangerously similar to a sole proprietorship, and you could potentially lose your limited liability.
If you have business partners, an operating agreement will help prevent misunderstandings by setting clear expectations about partner roles and responsibilities. Going into business without an operating agreement is never recommended, but when you have partners or other members involved, this document becomes an invaluable asset to your future success.
Though it’s an essential document, most states don’t require businesses to have an operating agreement, and no state requires your operating agreement to be on file in their records. Even if an operating agreement is not required in your state, we strongly recommend creating one.
The operating agreement is used in court and amongst members to settle disputes or to make general decisions. If you don’t have one, the state's default LLC rules will be applied.
The following states require all LLCs to have operating agreements:
Find your state’s statute regarding operating agreements below:
Alabama
Alaska
