Get peace of mind with an operating
agreement
Get peace of mind with an operating
agreement
Operating agreements start at $99.
Delivery of your filed doc 2-3 business days after processing
Without an operating agreement, your LLC will have to be governed by state rules by default.
We make it easy to create an operating agreement—simply answer some questions online and we’ll create your document.
What's the difference?
We make it easy to create your LLC operating agreement—simply answer a few questions online. LLC operating agreements typically include:
• Tax considerations
• Number of members
• Management structure
• Member investments
• Profit sharing
Specify that you are the sole owner and that you have limited liability.
Management
State your responsibilities as sole manager or responsibilities you are delegating to hired managers.
Contributions and distributions
Address the capital contributions you are making (cash and otherwise) and how you will be distributing losses and profits to yourself.
General rules
Set the basic rules for the management of the LLC, including rules about holding meetings and taking notes.
Dissolution
Create a plan for how you will dissolve the LLC and disperse company assets if necessary.
Signature
Sign the operating agreement, keep it in a safe place, and make a few copies.
Frequently asked questions
What should an operating agreement include?
Operating agreements vary depending on the business and membership interest. But even single-member LLCs typically include the following provisions:
- Member identifying information
- Statement of intent
- Business purposes
- Operating agreement term
- Tax treatment
- Admission of new members
You may also want to include optional items such as capital contributions, member meetings and voting, and dissolution procedures.
How important is an operating agreement for an LLC?
Operating agreements are very important for all new and existing LLCs. Without an operating agreement, you are unable to establish binding rules for your LLC, protect your assets, and solve potential issues and misunderstandings with other members. Your LLC will also have to default to state operating rules.
What is the purpose of an operating agreement?
The purpose of an operating agreement is to define rules and guidelines for a business. It can also protect your business against personal liability, financial liability, trade secret sharing, and conflicts of interest.
Do I need an operating agreement if it's just me?
It’s wise to draft an operating agreement even if you have a single-member LLC. It can help you protect your assets and interests, especially if you decide to add new members in the future. It can also:
- provide rules that will supersede the default provisions of your state's LLC laws
- serve as an additional document to show potential lenders
- specify who will take over management of the business
- affirm the separation between your business and you personally
Can I make my own operating agreement?
Yes, you can draft one on your own. However, working with us can help you be confident that your operating agreement is done right and sufficiently protects your LLC’s members. It’s a simple, quick way to create an operating agreement by answering just a few questions online.
What is a limited liability company?
A limited liability company, or LLC, is a type of business entity that is authorized by state law. An LLC is specifically designed to have some of the benefits of a corporation with less of the formality.
What is membership interest?
Membership interest signifies a person's ownership in an LLC. A person who has membership interest is entitled to a percentage of the profits and voting rights.
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