Free LLC Operating Agreement Template | Customize & Print 

Introduction

An LLC operating agreement template helps business owners clearly define how their company will operate. It sets structured rules for ownership, control, and decision-making from the very beginning. Using a proper LLC operating agreement template helps reduce internal disputes and strengthens personal liability protection.

This guide explains what an operating agreement template is, why it matters for LLCs, and how business owners can customize it correctly based on their needs.

What Is an LLC Operating Agreement Template?

An LLC operating agreement template is a written document that explains how a limited liability company is structured and managed. It defines ownership, voting rights, profit sharing, and management roles in clear terms.

This document also confirms that the LLC exists as a separate legal entity. That separation protects members from personal liability for company actions. If an LLC does not use an operating agreement, state default laws apply. These laws may not suit how the owners actually want to run the business.

Do You Need an Operating Agreement for Your LLC?

Some US states legally require LLCs to maintain an operating agreement.

States Where an Operating Agreement Is Required

• California (CA Corp Code § 17701.13)
• Delaware (6 DE Code § 18-101)
• Maine (31 ME Rev Stat § 1531)
• Missouri (MO Rev Stat § 347.081)
• New York (NY LLC Law § 417)

In other states, an operating agreement is not mandatory. Still, most legal and tax professionals strongly recommend using one.

Why Even a Free Operating Agreement Matters?

• Creates a clear structure for daily operations
• Separates business liability from personal assets
• Defines ownership and authority
• Helps banks, investors, and vendors verify control
• Avoids disputes between members

What Are the Types of LLC Operating Agreement Templates?

There are two main types based on ownership structure.

What Is a Single-Member LLC Operating Agreement?

A single-member LLC operating agreement suits companies with only one owner. The document is simple because one person controls all decisions. Even solo founders benefit from a written agreement. Banks and tax authorities often ask for it as proof of structure.

What Is a Multi-Member LLC Operating Agreement?

A multi-member LLC operating agreement applies when more than one owner exists. These agreements handle shared control, voting, and profit distribution.

Common provisions include

• Ownership percentages or units
• Rules for adding or removing members
• Profit and loss allocation
• Capital contribution terms
• Exit and dissolution procedures
• These terms directly affect member rights and responsibilities.

How to Create an LLC Operating Agreement Template?

You can customize an operating agreement template using these steps.

Step 1: Add Company Information

• Legal name of the LLC
• State of registration
• Tax classification
• Fiscal year end
• Management type

Step 2: Appoint a Registered Agent

• Individual or professional service
• Receives legal and government notices
• Ensures compliance with state rules

Step 3: Record Member Details

• Full legal names
• Ownership percentage or units
• Voting rights
• Capital contributions
• Admission dates

Step 4: Define Voting Procedures

• Majority or unanimous voting rules
• Quorum requirements
• Approval thresholds for major decisions

Step 5: Add Final Terms

• Principal business address
• Effective date
• Member signatures
• Once signed, the agreement becomes legally binding.

What Should a Sample LLC Operating Agreement Include?

A well-drafted operating agreement template usually includes:

1. Indemnification clauses to protect members
2. Profit and loss distribution rules
3. Defined member duties and roles
4. Expense reimbursement rules
5. Salary or compensation terms
6. Dispute resolution methods

These clauses ensure clarity during growth or conflict.

Sample LLC Operating Agreement

Curious about what an operating agreement for an LLC typically includes? Check out our free sample to see key terms to consider.

Then, use our step-by-step form to tailor one that fits your business. Save a copy in PDF or Word format for use in your company’s files.

How Ebizfiling Helps With LLC Operating Agreements?

1. Reviews your business structure and ownership details
2. Customizes the operating agreement template for your state
3. Aligns clauses with tax and compliance needs
4. Ensures accuracy for banks and legal use
5. Supports updates when members or structure change

In short,

A properly drafted LLC Operating Agreement template gives your business clarity and legal strength. It defines control, protects liability, and avoids future disputes.

Using a free operating agreement is a good start, but customization matters. With the right structure, your LLC stays compliant and well managed.

Suggested Read :

Secure BOI Filing for Corporate Transparency Act

Basic Information About Operating Agreements

LLC Operating Agreements and Templates

Understanding FinCEN BOI Corporate Transparency Act

FAQs on LLC Operational Agreement