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Legal Documents
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LLC Operating Agreement Template

Get free, state-specific LLC operating agreement templates for all 50 states. Learn what to include, when you need one, and why professional operating agreements provide better protection.
Sarah Johnson, J.D.
October 6, 2025

Do You Need an LLC Operating Agreement?

An LLC operating agreement is a legal document that outlines how your LLC will be run, including ownership structure, management responsibilities, and operating procedures. While not always legally required, it's one of the most important documents for protecting your business and personal assets.

States That Require Operating Agreements

These five states legally require LLCs to have an operating agreement:

  • • California
  • • Delaware
  • • Maine
  • • Missouri
  • • New York
Why You Should Have One Even If Not Required

Even in states where it's not legally required, an operating agreement is essential for:

  • • Protecting your limited liability status
  • • Defining ownership percentages and profit distribution
  • • Establishing management structure and decision-making processes
  • • Preventing disputes among members
  • • Providing clarity for banks, investors, and vendors
  • • Supporting your business's credibility and professionalism

Essential Elements of an LLC Operating Agreement

A comprehensive operating agreement should include these key sections:

1. Basic Company Information
  • • LLC name and formation date
  • • Registered agent information
  • • Principal business address
  • • Business purpose and activities
  • • Duration of the LLC (perpetual or specific term)
2. Ownership and Membership
  • • Names and addresses of all members
  • • Initial capital contributions
  • • Ownership percentages or units
  • • Additional contribution requirements
  • • Process for adding new members
3. Management Structure
  • • Member-managed vs manager-managed
  • • Voting rights and procedures
  • • Meeting requirements and procedures
  • • Manager selection and removal process
  • • Officer positions and responsibilities
4. Profit and Loss Distribution
  • • How profits and losses are allocated
  • • Distribution schedule and procedures
  • • Treatment of guaranteed payments
  • • Reserve requirements
5. Dissolution and Termination
  • • Events that trigger dissolution
  • • Winding-up procedures
  • • Asset distribution upon termination
  • • Member withdrawal procedures

Free State-Specific Templates

Below are free downloadable templates for all 50 states. Each template is customized for that state's specific requirements and legal standards.

State

Required?

Special Requirements

Download

California YesMust be in writing
Texas NoRecommended for liability protection
Florida NoStrongly recommended
New York YesPublication requirement
Delaware YesMust be maintained with company records
All Other States NoStrongly recommended

Single-Member vs Multi-Member Templates

The type of LLC you have determines which template you should use:

Single-Member LLC Operating Agreement

For LLCs with only one owner. This template is simpler and focuses on protecting your personal liability and defining your business operations.

Multi-Member LLC Operating Agreement

For LLCs with multiple owners. This template includes detailed provisions for ownership percentages, voting rights, profit distribution, and dispute resolution.


How to Customize Your Operating Agreement

While our templates provide a solid foundation, you'll need to customize them for your specific business situation:

Step 1: Gather Required Information
  • • Full legal names and addresses of all members
  • • Initial capital contributions from each member
  • • Ownership percentages or membership units
  • • Registered agent information
  • • Business purpose and activities
  • • Management structure preferences
Step 2: Define Key Business Decisions
  • • How will major decisions be made? (majority vote, unanimous consent, etc.)
  • • What constitutes a major decision? (hiring/firing, large purchases, etc.)
  • • How will profits and losses be distributed?
  • • What happens if a member wants to leave or sell their interest?
  • • How will disputes be resolved?
Step 3: Consider Future Scenarios
  • • What if you want to add new members?
  • • How will you handle member death or incapacity?
  • • What if the business needs additional capital?
  • • How will you dissolve the LLC if needed?
  • • What restrictions should apply to member activities?

Common Operating Agreement Mistakes to Avoid

Many business owners make these costly mistakes when creating their operating agreements:

  • Using generic online templates without customization

    Every business is unique—your operating agreement should reflect your specific situation and goals

  • Not addressing potential future scenarios

    Plan for growth, member changes, and business challenges before they happen

  • Ambiguous language and unclear terms

    Use specific language and define all terms to avoid interpretation disputes

  • Not having all members sign the agreement

    Unsigned agreements may not be legally binding or enforceable

  • Not keeping the agreement updated

    Review and update your operating agreement as your business grows and changes


Professional Operating Agreement Services

For maximum protection and customization, consider these professional options:

Attorney-Drafted Operating Agreement

Have an experienced business attorney draft a customized operating agreement tailored to your specific business needs and state requirements.

Online Legal Services

Services like LegalZoom and Rocket Lawyer offer operating agreement templates with some customization options and attorney review.

Our Professional Service

Get a professionally drafted operating agreement that meets your state's requirements and protects your business interests.


Frequently Asked Questions

Is an operating agreement required for single-member LLCs?

While only 5 states legally require operating agreements for all LLCs, single-member LLCs should still have one to protect their limited liability status and provide clarity for banking and contracting purposes.

Can I change my operating agreement after it's created?

Yes, you can amend your operating agreement as your business evolves. Most agreements include provisions for amendments, typically requiring majority or unanimous member approval.

Do I need to file my operating agreement with the state?

In most states, you don't need to file your operating agreement with the Secretary of State. However, you should keep it with your business records and provide copies to banks, investors, or other parties who request it.

What happens if I don't have an operating agreement?

Without an operating agreement, your LLC will be governed by your state's default LLC laws, which may not align with your business needs or goals. This can lead to disputes, unclear decision-making processes, and weakened liability protection.

Get Free Business Formation Today

Don't risk your business with generic templates. Form your business completely free and add a professionally drafted operating agreement ($49-99) that meets your state's requirements and provides comprehensive protection.

Start Your Free Business FormationLearn More About Operating Agreements
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