Free Operating Agreement Sample

If you are starting a new company or operating a limited liability company (LLC), you may need an operating agreement to establish the structure and guidelines for your business. At BizzLibrary.com, we offer a comprehensive and customizable free operating agreement sample that you can download in DOCX format.

What is an Operating Agreement?

An operating agreement is a legal document that outlines the internal workings of an LLC. It defines the ownership and management structure, as well as the rights and responsibilities of the members. While not all states legally require an operating agreement, it is highly recommended to have one in place to ensure clarity and protection for the company and its members.

Key Elements of an Operating Agreement

Here are some key elements that are typically included in an operating agreement:

1. Company Information: The operating agreement includes details about the company, such as its name, address, purpose, and registered agent.
2. Member Information: It identifies the members of the LLC and provides their contact information.
3. Ownership Interest: The agreement outlines the ownership interest of each member, including their percentage of ownership and capital contributions.
4. Distribution of Profits and Losses: It specifies how profits and losses will be distributed among the members, often based on their ownership percentages.
5. Management and Decision-Making: The operating agreement determines the management structure of the LLC, including whether it will be member-managed or manager-managed. It also outlines decision-making processes and voting rights.
6. Withdrawal and Dissolution: The agreement provides guidelines for members who wish to withdraw from the business and outlines the procedures for dissolution in case the company needs to be terminated.
7. Dispute Resolution: It may include provisions for resolving disputes among the members, such as through mediation or arbitration.

Download Your Free Operating Agreement Sample

Our free operating agreement sample is carefully drafted to cover the essential aspects of an LLC operating agreement. It provides a solid foundation for your company's operations and ensures everyone is on the same page.

Visit BizzLibrary.com today and download our free operating agreement sample in DOCX format. Customize it as per your specific requirements and ensure a smooth and organized functioning of your company.