Starting a Limited Liability Company (LLC) demands certain legal formalities and formal documentation. The Operating Agreement is one such crucial document that determines the way an LLC is managed. An Operating Agreement outlines the roles, responsibilities, and duties of the members and managers, defines the operational structure of the LLC, and dictates how business decisions are made.
In a manager-managed LLC, the managers run the company and make all the major decisions, while the members have limited involvement in the day-to-day operations. Therefore, having a manager-managed LLC Operating Agreement in place is vital to ensure smooth operations of the business.
While the Operating Agreement plays a vital role in the success of an LLC, preparing one can be a daunting task, especially for a new business owner. Fortunately, there are free templates available online that can help you get started.
A manager-managed LLC Operating Agreement template can be easily found online, and it provides an easy-to-follow format that covers essential provisions that should be covered in the Agreement. The template typically covers areas such as the name of the LLC, its purpose, management structure, voting rights, capital contributions, profits and losses, meetings, and much more.
While it may be tempting to just download a free template and fill in the blanks, it is advisable to have it reviewed by a legal professional to ensure that it complies with the relevant state laws and accurately reflects the LLC`s unique circumstances. A lawyer can also provide guidance on any additional provisions that may be necessary to protect the business`s interests.
In conclusion, a manager-managed LLC Operating Agreement is a critical document that should be created when forming an LLC. It sets the groundwork for the company`s structure and operation, and it is essential to ensure that it complies with state laws. While free templates are available online, it is important to have it reviewed by a legal professional to ensure that it protects the business`s interests in the long run.