Sample Limited Liability Company LLC Operating Agreement with Capital Contributions determining interest shares
About this form
This Sample Limited Liability Company (LLC) Operating Agreement with Capital Contributions determining interest shares is a crucial document that outlines the rules and regulations governing the internal operations of an LLC. It differs from other agreements, such as a general partnership agreement, by providing limited liability protections to its members while retaining the tax benefits of a partnership. This form establishes how profits, losses, and capital contributions are managed among members, ensuring clarity and legal compliance in managing the companyâs affairs.
Main sections of this form
- Name of the LLC.
- Purpose of the company.
- Details of members and their capital contributions.
- Management powers and responsibilities of members.
- Procedures for profit and loss allocations.
- Rules regarding withdrawal and assignment of member interests.
When this form is needed
This Operating Agreement should be used when establishing a Limited Liability Company (LLC). It is essential for members who want to clearly define ownership shares, contributions, and the management structure of their business. This document is particularly useful when several members are involved, ensuring that all parties have a mutual understanding of their roles and stakes in the company.
Who should use this form
This form is intended for:
- Individuals forming a new LLC with multiple members.
- Existing LLCs looking to formalize their operating procedures.
- Business partners wanting to outline their financial contributions and profit sharing.
How to complete this form
- Fill in the name of the LLC at the beginning of the agreement.
- List the membersâ names and addresses in the appropriate sections.
- Specify each member's capital contributions in detail.
- Describe the purpose of the LLC and its management structure.
- Have all members sign the agreement to validate it.
Is notarization required?
This form usually doesn’t need to be notarized. However, local laws or specific transactions may require it. Our online notarization service, powered by Notarize, lets you complete it remotely through a secure video session, available 24/7.
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Make edits, fill in missing information, and update formatting in US Legal Forms—just like you would in MS Word.
Download a copy, print it, send it by email, or mail it via USPS—whatever works best for your next step.
Sign and collect signatures with our SignNow integration. Send to multiple recipients, set reminders, and more. Go Premium to unlock E-Sign.
If this form requires notarization, complete it online through a secure video call—no need to meet a notary in person or wait for an appointment.
We protect your documents and personal data by following strict security and privacy standards.
Common mistakes to avoid
- Failing to specify the capital contributions of each member.
- Omitting the purpose of the LLC in the agreement.
- Not having all members sign the agreement, making it non-binding.
Benefits of completing this form online
- Convenient download and edit options allow for customization.
- Access to legally vetted templates ensures compliance with current laws.
- Time-saving compared to drafting from scratch or hiring an attorney.
Legal use & context
- This Operating Agreement serves as a legally binding document for LLC operations.
- Proper completion and execution protect membersâ interests and outline liabilities.
- Using this Agreement can help resolve disputes by clarifying roles and responsibilities.
Quick recap
- This LLC Operating Agreement is essential for defining ownership and management roles.
- It is designed to protect membersâ personal assets from company liabilities.
- Consult local laws to ensure proper usage and compliance.
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FAQ
Forms of LLC Capital Contributions If your capital contribution will be in the form of cash, making the contribution is generally as easy as making out a check from your personal funds to the LLC. Capital contributions, however, also can be in the form of property or services.
Get together with your co-owners and a lawyer, if you think you should (it's never a bad idea), and figure out what you want to cover in your agreement. Then, to create an LLC operating agreement yourself, all you need to do is answer a few simple questions and make sure everyone signs it to make it legal.
Every member of the LLC and the manager or managers (if there are any) need to sign the operating agreement. Each signatory should sign a separate signature page.Learn how to properly sign business documents on your state's LLC formation page.
Your contribution to the LLC as a member is called your capital contribution, your contribution to the ownership. This capital contribution gives you a share in the LLC, and the right to a percentage of the profits (and losses). If you are the only member, you have 100% of the ownership.
The core elements of an LLC operating agreement include provisions relating to equity structure (contributions, capital accounts, allocations of profits, losses and distributions), management, voting, limitation on liability and indemnification, books and records, anti-dilution protections, if any, restrictions on
An LLC Operating Agreement is the document wherein a Limited Liability Company memorializes its rules and structure.That said, many states do not require LLCs to create Operating Agreements. In fact, most do not. But that doesn't mean you shouldn't create one.
An operating agreement is a key document used by LLCs because it outlines the business' financial and functional decisions including rules, regulations and provisions. The purpose of the document is to govern the internal operations of the business in a way that suits the specific needs of the business owners.
Member Financial Interest. What percentage ownership does each member have? Corporate Governance. Corporate Officer's Power and Compensation. Non-Compete. Books and Records Audit. Arbitration/Forum Selection. Departure of Members. Fiduciary duties.
