LLC Bylaws Template

You can use an LLC Bylaws Template for your LLC. This agreement is generally drafted by members of the LLC (also referred to as owners) who use this as a legally binding document for potential future disputes among members. You should draft this agreement if you want to specifically define your business terms. Similar names that are used to identify the Bylaws include LLC Setup Agreement or an Operating Agreement.

What to Include in the Bylaws

The Bylaws will include a variety of information regarding the LLC, including the following:

  • The percentage of ownership interest for each member
  • How profits, losses, and expenses will be allocated
  • Member authority to bind the LLC to certain agreements
  • Member voting rights
  • When and how a member can withdraw from the LLC
  • Member rights to transfer interest to a third party
  • Death or disability of a member
  • How new members can be added, and the procedure for bringing on a new member
  • How the LLC will be liquidated
  • Priority of member claims upon dissolution of the LLC
  • Indemnification

Also included in this agreement is specific information regarding the LLC. Such information is also included in the Articles of Organization that is filed with the respective Secretary of State Office. Such information includes the name/address of the business, certificate of formation, registered agent/office of the LLC, how long it will last, and the business purpose of the LLC.

You’ll want to include information regarding member contributions, i.e., which members provided what items, whether it is office furniture, office supplies, or even a company vehicle.

You should also provide information regarding member meetings, and when you will choose to hold such meetings. While meeting minutes aren’t required of an LLC, as they are with corporations, you should strongly consider keeping recordings of the meetings to keep track of what was discussed and voted on to prevent any future legal disputes among members.

If you need to find a Bylaws template, you can easily find one online. Be sure to find the appropriate template based on if you are operating a single-member or multi-member LLC. A single-member LLC is one with only one owner. A multi-member LLC is one with two or more owners.

While it is important and beneficial for you to have bylaws for your LLC, it is also important to understand what is required of you when actually forming your LLC.

Forming Your LLC

First and foremost, you’ll need to choose a business name. You’ll want to conduct a business entity search on your state’s Secretary of State websitein order to identify whether or not the business name you want to use is available. If another LLC is already using the name, then you must choose a different name.

After you choose your business name, you’ll want to consider whether you are going to form a single-member or multi-member LLC. As previously noted, the single-member LLC means that only you will own and operate the LLC. If you want to form an LLC with at least one other person or business, then you will form a multi-member LLC.

You also need to find a principal place of business where the LLC will operate. This is generally known as the company’s headquarters and will be the main storefront that you have customers visit when conducting business.

Another requirement of forming an LLC is finding a registered agent. This agent, generally a person who is a resident of the state in which your LLC is located, will accept important legal notices on the LLC’s behalf. If you are a single-member LLC, you can operate as your own registered agent, usually. Be sure to check out your state’s rules and regulations regarding the registered agent requirements.

Once you obtain your employer identification number (EIN), you can open a business bank account. All money pertaining to the business should be deposited into that business bank account, and only designated members can withdraw funds from the account. Again, if you operate as a single-member LLC, then you won’t need to worry about identifying such information in your LLC’s documentation. But if you operate a multi-member LLC, this information is important to include in your bylaws.

If you need help drafting your LLC Bylaws, or need to obtain a template for LLC Bylaws, 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.