Florida LLC Operating Agreement Template: Everything You Need to Know
The Florida LLC Operating Agreement template allows owners/members to create the initial operating procedures, formation articles, and other business needs. 3 min read
2. Items Included in an Operating Agreement
3. Information for Filling in the Florida LLC Operating Agreement Template
The Florida LLC Operating Agreement template allows owners/members to create the initial operating procedures, formation articles, and other business needs. It is a legal document that members/owners agree to in regard to the operation of the business.
Information About Florida's LLC Operating Agreement
- It is not a requirement in the State of Florida for a business to create an Operating Agreement. Although not required, it is strongly recommended that a business put an agreement into place. Doing so separates the business and personal assets should the business fail or if there is any litigation filed against the company.
- Having the operating agreement helps with tax benefits that are not available to a business without an agreement.
- Each member should review the Operating Agreement to ensure the verbiage is clear regarding the set-up of the agreement.
- It is recommended that member(s) consult with an attorney knowledgeable in the area of operating agreements if needed.
- The Operating Agreement stipulates how the LLC will be managed operationally and financially by the members.
- An Operating Agreement outlines several areas such as the identity of the members and the percentage of the LLC each owns. This is often referred to as "membership interest." The agreement also clarifies the management structure, how the taxes will be paid, and the manner used to distribute profits and losses among business members.
- The Operating Agreement is an internal document that does not need to be sent to the state. It is meant to be a working document for the members to make changes or updates when needed.
- For simple changes such as an address change, update it and then save it as a new document, retaining the original in a folder for archived copies.
- More complex changes such as working with investors for financing or purchases by one member of another member's interest should be handled by an attorney.
- Any changes made to the Operating Agreement need to be signed by each member. As noted, keep copies of all versions (previous and current) as both digital and hard copies.
Items Included in an Operating Agreement
The following are some of the basic items in an Operating Agreement for the state of Florida.
- The formation information of the Florida LLC
- The designated Florida agent for service of process situations
- The length of time (term) of the LLC
- Purpose of the LLC
- The Florida LLC's place of business
- The process for admitting new LLC members
- The process for assignments of Florida LLC membership interests (percentage of ownership of each member)
- Determining how the LLC's membership interest will be evaluated
- The rules that cover the exiting of a member from the Florida LLC
- Distribution of interests of the LLC
- A list of the managers of the LLC
- A list of the LLC's members
- A Florida LLC Operating Agreement may be oral or written.
- If the agreement is both oral and written, should there be any inconsistency in adhering to the agreement, the written provisions take precedence over oral provisions.
- Members can implement an Operating Agreement at any time. This includes prior to the formation of the LLC or after.
Information for Filling in the Florida LLC Operating Agreement Template
Use a free online Operating Agreement template and follow the instructions for each section. Some of the information you will be asked to provide includes the following.
- The LLC name and the date the LLC Formation Documents were mailed to the state.
- The state where the LLC was formed along with its effective date.
- The name of the Registered Agent. This may be a commercial Registered Agent or someone you've assigned to serve in this capacity, or you can name yourself.
- A description of the LLC's business purpose.
- The duration planned for the existence of the LLC. For example, listing "Perpetual" means the LLC will exist until it closes or is dissolved by the members.
- Determine the tax classification. Single-member LLCs are taxed as sole proprietorships. Multi-member LLCs are taxed as a partnership. List the type applicable to your LLC.
- Include the names and addresses of all members. Also, include their contribution to the LLC and their percentage of interest.
- An Operating Agreement does not require a notary.
- When all sections of the agreement are filled out, have each member sign. File a copy for future use should any changes be made.
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