Multiple Member Managed LLC Operating Agreement Template
Operating agreement template for a multiple member managed LLC
Please feel free to use our LLC operating agreement sample of a multiple member LLC operating agreement. The LLC operating agreement is crucial for an LLC with more than one member.
We have two LLC operating agreement templates for you. The first one is a more complex, editable, fill-in-the-blank, multiple-member LLC operating agreement. The second operating agreement is a print and sign multiple-member LLC operating agreement sample. You can use it as is, and you’ll be done in a minute.
Download: Mulitple-member managed LLC operating agreement
Why does a multiple member managed LLC need an operating agreement?
A multiple member managed LLC is for a limited liability company that has multiple owners and the members (owners) manage the day-to-day functions of the limited liability company. These are the LLCs most likely to end up in dispute due to members not establishing lines of communication between themselves in the beginning stages of the company. It’s always exciting to start a business. Many people find themselves not wanting to have the awkward discussion about what to do when you don’t like each other anymore or the business fails. Our multiple member managed operating agreement goes into great detail as to what you agree you’ll do should the other party decide to no longer be a part of the LLC or do their share of the required work.
If the LLC has multiple members and some of them are not part of the day-to-day functions, you may want a manager managed LLC operating agreement, which we also provide for free.
If all members are involved in the day-to-day functions of the LLC, there is no reason to overcomplicate the LLC operating agreement for a multiple member managed LLC. Members are technically owners. The only point of transitioning from a multiple-member LLC to a manager managed LLC would be to protect the members’ privacy by only listing the managers on the state documents you file. Managers don’t have to be members, so you could say that a manager managed LLC is a little more private. But if you’re going for simplicity, a multiple member managed LLC operating agreement will do the trick for you and your new partners.
If you’re going into business with someone, it’s absolutely crucial that you don’t ignore some of the initial details. You need to know what will happen when you don’t like the other members in your LLC someday. Let’s say something as innocent as the other members have family problems and don’t come to work for a month or go to jail. All members need to have their concerns on the table and put them down in writing in the member managed LLC operating agreement. Having a signed agreement now will solve many disputes and wasted time you may have later.
Some of the important things to get in writing are:
- How much money each member is putting into the LLC.
- If members are to make continual contributions.
- If a member is investing an asset besides cash into the business for a membership interest, that the members agree on a cash value of that asset.
- The percentages of ownership are documented.
- How the other members can buy out a member’s interest if a member wants out.
- How you will value the interest of the member that is leaving.
- What you will do with a defunct member that doesn’t want to be a part of the business anymore.
How do I know which LLC operating agreement to use?
If you have two owners who are both going to be involved in the day-to-day operations of running the LLC, you’re on the right page. You need the multiple member managed LLC operating agreement.
If you have two owners but 100% of the owners will NOT work in the day-to-day operations of the LLC business, you need the manager managed LLC operating agreement.
If you are only one owner of the LLC, you have a single member LLC. You just need a simple single member LLC operating agreement.
If after all this reading, you just want to pay someone, please take one last look at saving yourself a bunch of money and hassles. We have a free template that can be customized however you’d like. It’s a generic LLC operating agreement.
We provide these no-nonsense multi-member managed LLC operating agreement templates for you to use for free. These LLC operating agreement samples are available to you in PDF and word doc format. They are specific in outlining the specific members’ duties and responsibilities for managing the LLC as well as the way you can buy out another member and what the LLC members are agreeing will happen should fights or disagreements occur. We’ve had over 300,000 multiple member LLCs use our free multi-member LLC operating agreement and still to this day have not had a single complaint. And we have heard some amazing stories about entrepreneurs’ hard earned membership interests have been saved by using our multi-member LLC operating template. However, as always, we must advise you to consult an attorney if you feel uneasy about anything you sign.
More LLC Forms:
Articles of Organization
EINs for LLCs
LLC Bank Accounts
LLC Membership Certificate
LLC Capital Contribution
LLC Annual Minutes