LLC Member-Managed Operating Agreement

This is a template for an operating agreement for a member-managed limited liability company (“LLC”). An operating agreement establishes the rights and responsibilities of the LLC and its members (i.e. owners). If you have an LLC, you should have an operating agreement.

 

This agreement is intended to be a basic operating agreement for small businesses with more than one owner, all of whom will be involved in the management and oversight of the business. 

This document also helps to establish the businesses as an entity separate from yourself  for liability purposes. It also makes sure you and the other owners are on the same page, and  outlines decision making and other important business processes. 

 

If your business falls under the definition of a restricted professional LLC in Pennsylvania, you should speak with an attorney about any additional edits that may be required. 

- Introductory page with key considerations and more information on how to get the most out of the template 

 

-Contract template with comment  boxes that explain the intricacies of a member-managed LLC operating agreement, including clauses that account for ownership percentages, decision making and compensation, member rights, adding and removing members, and other essential governing issues!

-A small retail business with two owners that formed an LLC and both will be involved in day to day decision making.

 

-A small consulting business with three owners that formed an LLC and all will be involved in day to day decision making.

 

-Any business where there is more than one owner and all the owners are involved in the day to day decision making.

This template was drafted by a Pennsylvania licensed attorney under Pennsylvania laws. It may be used by individuals in other states but if you are located in another state, it may be beneficial to speak to an attorney licensed in your state for any specific considerations. Templates do not constitute specific legal advice or create an attorney-client relationship. If you have specific questions about how you should use the resource or about your unique situation, please speak with an attorney.