Operating Agreement

This article describes the operating agreement and how you can access it on Savvi.

Signatures Required:

All Members and Managers of the LLC.

Purpose:

An operating agreement is an organizational document that outlines the LLC's operating and governing structure and process. In many ways, it is similar to the Bylaws of a corporation. In some states, these agreements may be called "LLC Agreements" rather than Operating Agreements. State laws permit LLCs to be flexible in how they are organized and governed, and thus operating agreements are incredibly flexible and customizable. Operating Agreements typically address, among other items, the following:

i) Governance structure and voting rights,

ii) Classes of interest that may be issued,

iii) Distribution waterfalls and other economic rights,

iv) The process for raising capital and admitting members,

v) Management process (decision-making) and the procedure for transfer or withdrawal from the LLC, and

vi) Other information about fiduciary duties, dissolution process, tax treatment, etc.

Access this template through the following workflow:

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