What is included in a Utah operating agreement?
Your operating agreement should lay out the “big-picture” plan for your Utah LLC. Your operating agreement can include almost any topic, as long as it isn’t prohibited by Utah state laws. However, there are a few topics that every operating agreement should cover:
- Transfer of membership interest
- Voting rights and decision-making powers
- Initial contributions
- Profits, losses, and distributions
- Management
- Compensation
- Bookkeeping procedures
- Dissolution
Provisions that cannot be included in a Utah LLC operating agreement are listed in UT Code § 48-3a-112 (2019).
What information do I need to use Northwest’s Free Utah LLC operating agreement?
Want to focus on your business and leave the legal hullabaloo to us? Our lawyers drafted a comprehensive operating agreement you can use for free. You can even fill it out on this page, save it in a free account for later, and download a completed draft to sign.
In order to fill out our free operating agreement template, you’ll need your:
This must be your business’ legal entity name, or the name you put on your LLC Articles of Organization.
Did an LLC member contribute $500? $5k? A storefront? Put that here.
You’ll just write in 16 here since our version has a set amount of pages.
Remember, this is an internal document, so you won’t have to submit these names to the state just because they’re on here. However, you might need to add these people to your BOI Report.
Include any initial contributions, even if it’s only a small percentage.
While we recommend having a business bank account, some banks like to actually see the operating agreement before you open the account. If that’s the case, you can leave this blank for now.
This is the place your business operates from.
You can add this in later if you aren’t sure when your meeting will be held.
There’s a few different spots where you’ll need to add at least one members’ signature. These are on pages 13, 14, 15, and 16 on our template.
FAQs
Utah doesn’t specifically require LLCs to enter into an operating agreement. However, in the absence of one, your LLC will be governed by the Utah Revised Uniform Limited Liability Company Act.
No, Utah does not require you to file your operating agreement with the state. The operating agreement is an internal document for you to keep on file at your business.
Definitely. Many people wonder why they need an operating agreement for a one-person business, but operating agreements are extremely important for single-member LLCs. The operating agreement helps you to prove to a bank that you own the LLC, and in case of a lawsuit, the operating agreement can help you maintain your limited liability status. Without an operating agreement, a single-member LLC can look dangerously similar to a sole proprietorship, which does not have limited liability.
*This is informational commentary, not advice. This information is intended strictly for informational purposes and does not constitute legal advice or a substitute for legal counsel. This information is not intended to create, nor does your receipt, viewing, or use of it constitute, an attorney-client relationship. More information is available in our Terms of Service.