The LLC Operating Agreement has information about the LLC itself, including the name, type/description of services, how long the LLC will be in business, and office address.
The LLC agreement includes the following information for each member:
- Name and address
- Membership class
- Capital contribution
- Percentage of ownership
- Share of profits and losses
An operating agreement also addresses whether a member can voluntarily leave the LLC, if they can compete against the LLC after leaving, how assets are distributed if the company dissolves, and how new members are admitted.
An LLC Operating Agreement specifies how the company will be managed, including how decisions will be made and if actions require a majority of members to vote in favor of decisions (referred to as unanimous consent).
Regular meetings are part of an LLC’s obligations, which is why details regarding where and when meetings will be held are important to include in the operating agreement.
An LLC can be managed either by its members or by a designated manager.