Whilst it may seem a complicated legal document, writing an operating agreement does not need to be a difficult process. Using an online business operating agreement template, for example, can speed up the process dramatically.
When you write your own document, remember that it should be written in plain English so it is easy for anyone to interpret. This will be important when sharing this information with fellow members of the business.
In addition to the information you must detail about ownership percentages and investment capital, you should also include a number of statements.
The first of these is a statement of intent, which indicates the LLC is being set up following the laws of your state and that these will apply once the articles of organization have been registered.
Secondly, you should include a business purpose statement. This outlines the nature of the company’s operations to make clear what the LLC will do.
Unlike the articles of organization, your operating agreement doesn’t need to be submitted to a government office. Instead, it should be held by the registering agent and any other members of the business.
Once the document is completed and signed, a copy should be distributed to each member of the company. It should be stored in a safe place until it is needed or has to be amended in the future.