Example of Operating Agreement for LLC: Everything You Need to Know
You can find an example of an Operating Agreement online. An Operating agreement is formed after your LLC has an active status. 3 min read
You can find an example of an Operating Agreement online. An Operating agreement is formed after your LLC has an active status.
What Is an LLC?
In order to form an LLC, you must file the necessary paperwork with the Secretary of State's office. An LLC business structure offers protection to its members. A company debtor cannot seize a Member's personal assets to pay off company debt. Form an LLC (Limited Liability Company) if you want a business structure that protects the company owners' (also known as members) personal assets. Create your LLC's Operating Agreement when your state assigns an "Active" status to your business.
How to Form an LLC? Select your State
Since most U.S. business owners start a business to fill a local need, it is logical to form an LLC in the state where you are opening your business. Some states like Delaware, Nevada, and Wyoming appeal to business owners because the legislation and business laws are more beneficial to LLCs. For instance, Delaware LLCs do not have to disclose their members. They only have to have their Registered Agent listed on the public record.
If your LLC provides goods or services to a local community, then register your LLC in the state where you do business. There are some businesses like internet businesses where the location is irrelevant. These businesses can elect to form an LLC in a state that aligns favorably with their business infrastructure. The primary requirement for registering your business outside your home state is to find a Registered Agent that lives in the state where you are registering your business. You can easily hire a Registered Agent in another state.
How to Form an LLC? Select a Name
Select a name for your business that:
- represents your business specialty.
- is unique and memorable.
Before registering your business, go to the Florida Division of Corporation's website and make sure the name you want for your LLC is not taken. If the business name you want to use has an "INACTIVE" or "INACT" status, you can use it. In this case, the targeted name is inactive so you can file the business under that name. Business websites should use their LLC name for the URL address.
How to Form an LLC? Select a Registered Agent
Your LLC needs a Registered Agent to receive formal documents, such as legal notices or lawsuits, on your company's behalf. The Registered Agent can be a member or third-party hired to represent your business. If your business is a Single-Member LLC, check the residing state rules regarding Registered Agents. Some states allow the Member to register as the agent while other states require a third-party to act as the registered agent.
How to Form an LLC? File for Your LLC (Articles of Organization)
Since each state has their own process for filing an LLC's Articles of Organization, make sure you know the steps you must follow for the state of interest. Fill out and submit your Articles of Organization:
- Online if your state offers electronic submission.
- Via mail if either your state does not offer the service or you prefer to mail it.
To file your LLC's Articles of Organization, you need:
- Funds for the filing fee.
- A primary location for your business and a mailing address.
- Your registered agent's name and address.
- The name and email address where your State can communicate important notices.
- The name and addresses of all members and any authorized to do business on the company's behalf (like opening a bank account).
How to Form an LLC? Write the LLC Operating Agreement
Once you file partnership">your Articles of Organization and its status is active, you need to create the Operating Agreement for your LLC. Unlike your Articles of Organization, you are not required to register your operating agreement with any government office including the Secretary of State's office.
Be sure to include the following key elements in your LLC Operating Agreement:
- All Member names and signature.
- Each member's partnership interest and how much investment they made in the company.
- You Annual Meeting dates.
If you need help with either filing or getting an example of an Operating Agreement, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.