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. If there is only one member in the LLC, please see our single member LLC operating agreement template. 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, and the second one is a print and sign multiple member LLC operating agreement sample.
A member managed LLC is for an LLC that has multiple members and the members are part of 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 caring about communicating between themselves in the beginning stages of the company. 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.
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 making a multiple member LLC a manager managed LLC would be to only list 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, 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 blow off some of the initial details. You need to know what will happen when you don’t like the other members in your LLC. When the other members have family problems and don’t come to work for a month or go to jail. All members need to get 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 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 putting an asset besides cash into the business for a membership interest, that the members agree on a cash value of that asset.
- The percentages 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.
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 pretty specific in the determined duties of the members’ responsibilities of the LLC. As always, we must advise you to consult a local attorney if you feel uneasy about anything you sign.
More LLC Forms:
Step 1: LLC Organizational Forms
Step 2: Initial LLC Setup
Step 3: Get an EIN for LLC
Step 4: Open a Bank Account
Step 5: LLC Maintenance Forms
Other Legal Documents:
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