Company name and location: States the full legal name of the LLC and the address of its principal place of business.
Company organization: Confirms the date of formation, state of registration, registered agent, and governing law (jurisdiction).
Capital contributions: Describes the money, property, or services each member contributes and whether additional contributions may be required.
Profits, losses, and distributions: Explains how revenue, losses, and cash or property distributions will be allocated among members for tax and accounting purposes.
Management: Defines whether the LLC is member-managed or manager-managed and outlines decision-making authority and voting rights.
Compensation: States whether members or managers will receive salaries, reimbursements, or other compensation for services.
Bank accounts: Identifies how business bank accounts will be opened and managed, and who has the authority to access company funds.
Ownership of company assets: Clarifies that all business property and assets belong to the LLC, not the individual members, reinforcing limited liability protection.
Books, records, and accounting: Sets requirements for maintaining financial records, income statements, tax filings, and members’ rights to inspect company documents.
Dissolution: Describes events that may trigger dissolution and explains how assets will be liquidated and distributed.
Mediation: A dispute resolution process where LLC members agree to work with a neutral third party to resolve conflicts outside of court. This clause helps reduce legal costs, preserve business relationships, and provide an effective way to handle disagreements.
Severability: A provision stating that if one part of the operating agreement is found invalid or unenforceable, the rest of the agreement remains in effect.
Declaration: A statement confirming that the members agree to the terms of the limited liability company operating agreement.
Signatures and date: Electronic signatures of all members (and managers, if applicable) and the effective date of the agreement.
