Limited Liability Company Operating Agreement Download

Limited Liability Company Operating Agreement

LIMITED LIABILITY COMPANY OPERATING AGREEMENT

FOR

_________________________

A Single Member‐Managed Limited Liability Company

ARTICLE I

Company Formation

1.1 FORMATION. The Member hereby does form a Limited Liability Company ("Company")

subject to the provisions of the Limited Liability Company Act as currently in effect as of

this date. Articles of Organization shall be filed with the Secretary of State.

1.2 NAME. The name of the Company shall be: ____________________________________.

1.3 REGISTERED AGENT. The name and location of the registered agent of the Company

shall be:

____________________________________

______________________

_______________________

1.4 TERM. The Company shall continue for a perpetual period unless,

(a) The Member votes for dissolution; or

(b) Any event which makes it unlawful for the business of the Company to be carried on

by the Member; or

(c) Any other event causing dissolution of this Limited Liability Company under the laws

of the State of ___________________.

1.5 CONTINUANCE OF COMPANY. Notwithstanding the provisions of ARTICLE 1.4, in the

event of an occurrence described in ARTICLE 1.4(c), if there is at least one remaining

Member, said remaining Member shall have the right to continue the business of the

Company. Such right can be exercised by the written vote of the remaining

Member within ninety (90) days after the occurrence of an event described in ARTICLE

1.4(c). If not so exercised, the right of the Member to continue the business of the

Company may expire if that member desires.

Limited Liability Company Operating Agreement

1.6 BUSINESS PURPOSE. The purpose of the Company is to __________________________

________________________________________________________________________

1.7 PRINCIPAL PLACE OF BUSINESS. The location of the principal place of business of the

Company shall be:

_________________________

The principal place of business may be changed to a location the Member may select.

The Member may also choose to store company documents at any address the

Member chooses.

1.8 MEMBER. The name and place of residence of the member are contained in Exhibit 1

attached to this Agreement.

1.9 ADMISSION OF ADDITIONAL MEMBERS. Except as otherwise expressly provided in the

Agreement, additional members may be admitted to the Company through issuance by

the company of a new interest in the Company or a sale of current a percent of current

Member’s interest.

ARTICLE II

Capital Contributions

2.1 INITIAL CONTRIBUTIONS. The Member initially shall contribute to the Company capital

as described in Exhibit 2 attached to this Agreement. The total value of such

property and cash is ____________________________.

2.2 ADDITIONAL CONTRIBUTIONS. Except as provided in ARTICLE 6.2, no Member shall be

obligated to make any additional contribution to the Company's capital.

ARTICLE III

Profits, Losses and Distributions

3.1 PROFITS/LOSSES. For financial accounting and tax purposes the Company's net profits

or net losses shall be determined on an annual basis and shall be allocated to the

Members in proportion to each Member's relative capital interest in the Company as set

forth in Exhibit 2 as amended from time to time in accordance with Treasury Regulation

1.704‐1.

3.2 DISTRIBUTIONS. The Member shall determine and distribute available funds annually or

at more frequent intervals as the Member sees fit. Available funds, as referred to

herein, shall mean the net cash of the Company available after appropriate provision for

expenses and liabilities, as determined by the Member. Distributions in liquidation of

Limited Liability Company Operating Agreement

the Company or in liquidation of a Member's interest shall be made in accordance with

the positive capital account balances pursuant to Treasury Regulation 1.704‐

l(b)(2)(ii)(b)(2). To the extent a Member shall have a negative capital account balance,

there shall be a qualified income offset, as set forth in Treasury Regulation 1.704‐

l(b)(2)(ii)(d).

3.3 C CORPORATION ELECTION. The Member may elect to be treated as a C corporation at

any time to keep the profits of the LLC at the company level and not be forced to

distribute profits to the Member.

ARTICLE IV

Management

4.1 MANAGEMENT OF THE BUSINESS. The management of the business is invested in the

Member.

4.2 MEMBER. The liability of the Member shall be limited as provided pursuant to

applicable law. The Member is in control, management, direction, and operation of the

Company's affairs and shall have powers to bind the Company with any legally binding

agreement, including setting up and operating a LLC company bank account.

4.3 POWERS OF THE MEMBER. The Member is authorized on the Company's behalf to make

all decisions in accordance with ARTICLE 4.2 as to (a) the sale, development lease or

other disposition of the Company's assets; (b) the purchase or other acquisition of other

assets of all kinds; (c) the management of all or any part of the Company's assets; (d)

the borrowing of money and the granting of security interests in the Company's assets;

(e) the pre‐payment, refinancing or extension of any loan affecting the Company's

assets; (f ) the compromise or release of any of the Company's claims or debts; and, (g)

the employment of persons, firms or corporations for the operation and management of

the company's business. In the exercise of its management powers, the Member is

authorized to execute and deliver (a) all contracts, conveyances, assignments leases,

sub‐leases, franchise agreements, licensing agreements, management contracts and

maintenance contracts covering or affecting the Company's assets; (b) all checks, drafts

and other orders for the payment of the Company's funds; (c) all promissory notes,

loans, security agreements and other similar documents; and, (d) all other instruments

of any other kind relating to the Company's affairs, whether like or unlike the foregoing.

4.7 NOMINEE. Title to the Company's assets shall be held in the Company's name or in the

name of any nominee that the Member may designate. The Member shall have power

to enter into a nominee agreement with any such person, and such agreement may

contain provisions indemnifying the nominee, except for his willful misconduct.

4.8 COMPANY INFORMATION. Upon request, the Chief Executive Member shall supply to

any member information regarding the Company or its activities. Each Member or his

authorized representative shall have access to and may inspect and copy all books,

Limited Liability Company Operating Agreement

records and materials in the Chief Executive Member’s possession regarding

the Company or its activities.

4.9 EXCULPATION. Any act or omission of the Member, the effect of which may cause or

result in loss or damage to the Company or the Member if done in good faith to

promote the best interests of the Company, shall not subject the Member to any

liability to the Member.

4.10 INDEMNIFICATION. The Company shall indemnify any person who was or is a party

defendant or is threatened to be made a party defendant, pending or completed action,

suit or proceeding, whether civil, criminal, administrative, or investigative (other than an

action by or in the right of the Company) by reason of the fact that he is or was a

Member of the Company, Manager, employee or agent of the Company, or is or was

serving at the request of the Company, for instant expenses (including attorney's fees),

judgments, fines, and amounts paid in settlement actually and reasonably incurred in

connection with such action, suit or proceeding if the Member acted in good faith and in

a manner he/she reasonably believed to be in or not opposed to the best interest of the

Company, and with respect to any criminal action proceeding, has no reasonable cause

to believe his/her conduct was unlawful. The termination of any action, suit, or

proceeding by judgment, order, settlement, conviction, or upon a plea of "no lo

Contendere" or its equivalent, shall not in itself create a presumption that the person

did or did not act in good faith and in a manner which he/she reasonably believed to be

in the best interest of the Company, and, with respect to any criminal action or

proceeding, had reasonable cause to believe that his/her conduct was lawful.

4.11 RECORDS. The Member shall cause the Company to keep at its principal place of

business or other location the following:

(a) A copy of the Certificate of Formation and the Company Operating Agreement and

all amendments;

(b) Copies of the Company's federal, state and local income tax returns and reports, if

any, for the three most recent years;

(c) Copies of any financial statements of the limited liability company for the three most

recent years.

ARTICLE V

Compensation

5.1 MEMBER MANAGEMENT FEE. Any Member rendering services to the Company shall be

entitled to compensation commensurate with the value of such services.

5.2 REIMBURSEMENT. The Company shall reimburse the Member for all direct out‐of‐

pocket expenses incurred by the Member in managing the Company.

Limited Liability Company Operating Agreement

ARTICLE VI

Bookkeeping

6.1 BOOKS. The Member shall maintain complete and accurate books of account of the

Company's affairs at the Company's principal place of business or other agreed location.

Such books shall be kept on such method of accounting as the Member shall select. The

company's accounting period shall be the calendar year.

6.2 MEMBER'S ACCOUNTS. The Member shall maintain separate capital and distribution

accounts for each member. Each member's capital account shall be determined and

maintained in the manner set forth in Treasury Regulation 1.704‐l(b)(2)(iv) and shall

consist of his initial capital contribution increased by:

(a) Any additional capital contribution made by him/her;

(b) Credit balances transferred from his distribution account to his capital account;

and decreased by:

(a) Distributions to him/her in reduction of Company capital;

(b) The Member's share of Company losses if charged to his/her capital account.

6.3 REPORTS. The Member shall close the books of account after the close of each

calendar year, and shall prepare and send to each member a statement of such

Member's distributive share of income and expense for income tax reporting purposes.

ARTICLE VII

Transfers

7.1 ASSIGNMENT. According to the appropriate Court, should the Member have a creditor

with a judgment that was issued an assignment of the membership interest, the creditor

shall only obtain an assignment of the membership interest, not the actual transfer of

Membership in the LLC. The new assignee does not have any rights of the Member or

have the ability to be involved in management of the LLC or the right to dissolve the LLC.

The new assignee is only granted rights of the distributions of the Member’s interests, if

the Member decides to distribute at all, not the rights of membership. The assignee

must release the Member’s interests back to Member upon payment of the judgment in

accordance with the appropriate Court.

ARTICLE VIII

Dissolution

8.1 DISSOLUTION. The Member may dissolve the LLC at any time. The

Member may NOT dissolve the LLC for a loss of membership interests.

Upon dissolution the LLC must pay its debts first before distributing cash,

assets, and/or initial capital to the Member or the Members interests. The

Limited Liability Company Operating Agreement

dissolution may only be ordered by the Member, not by the owner of the

Members interests.

CERTIFICATE OF FORMATION

This Company Operating Agreement is entered into and shall become effective as of the

Effective Date by and among the Company and the person executing this Agreement as

Member. It is the Member’s express intention to create a limited liability company in

accordance with applicable law, as currently written or subsequently amended or redrafted.

The undersigned hereby agree, acknowledge, and certify that the foregoing operating

agreement is adopted and approved by each member, the agreement consisting of ____ pages,

constitutes, together with Exhibit 1, Exhibit 2 and Exhibit 3 (if any), the Operating Agreement of

____________________________________________________, adopted by the member as of

_______________________, _______ 20______.

Member:

________________________________ Printed Name ________________________

Signature

Percent: _____%

Limited Liability Company Operating Agreement

EXHIBIT 1

LISTING OF MEMBERS

As of the _____ day of ______________________, 20_____ the following is a list of Members

of the Company:

Name_________________________________ Percent ______%

Address _______________________________________________

Limited Liability Company Operating Agreement

EXHIBIT 2

CAPITAL CONTRIBUTIONS

Pursuant to ARTICLE 2, the Member’s initial contribution to the Company capital is stated to be

$______________________. The description and each individual portion of this initial

contribution are as follows:

__________________________________________________________ $______________

SIGNED AND AGREED this _____ day of ________________, 20____.

____________________________________

Member

Fillable Printable Limited Liability Company Operating Agreement Download

Fillable Printable Limited Liability Company Operating Agreement Download