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LLC Operating Agreement Template

An LLC operating agreement sets out how a limited liability company is owned and run — each member's capital contribution and percentage interest, whether the company is manager-managed or member-managed, how profits and losses are split, and the limited-liability language that keeps members' personal assets separate from the company's debts. Download the ready-to-fill template below, or read the field-by-field checklist first, including what varies by the state or country where the LLC is formed.

Download the LLC Operating Agreement

A complete, ready-to-fill PDF — 14 clauses, blanks for every detail, and a signature block for both parties. Free, no email, no account. Read it and adapt it before you use it; the cover page explains what it can and cannot do for you.

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Need the other party to sign it too? Send it for signature with a full audit trail and a tamper-evident seal on the finished file — they never need an account. See pricing.

This is a template, not legal advice

This document is a general-purpose template provided for information only. It is not legal advice, it does not create a lawyer–client relationship, and nobody has reviewed it against your situation.

Laws differ by country, state and province, and they change. A clause that is standard in one place can be unenforceable — or illegal — in another. Terms that are ordinary between two businesses can be void in a consumer or employment context.

Read every clause before you use it, fill in every blank, and delete anything that does not apply. For anything high-value, unusual, or that you could not afford to lose a dispute over, have a qualified lawyer in your jurisdiction review it before it is signed.

This kind of document is regulated differently almost everywhere. Many places require specific notices, disclosures or statutory wording, and some make clauses like these unenforceable outright. Treat this template as a starting point to take to a local lawyer, not as a document to sign as-is.

What to include in an LLC operating agreement

  • Company name, state of formation and formation filing

    The LLC's legal name exactly as filed, the state or country where it was organized, and the date and office where the articles of organization (or certificate of formation) were filed.

  • Members, capital contributions and percentage interests

    Each member's full legal name, address, what they contributed to start the company, and the percentage membership interest that contribution bought them.

  • Manager-managed or member-managed election

    Whether every member takes part in running the company, or the members hand day-to-day management to one or more designated managers — see below for why this is the choice that matters most.

  • Voting thresholds for major decisions

    What percentage of members must approve admitting a new member, selling substantially all assets, taking on significant debt, or dissolving the company.

  • Allocation of profits and losses

    How the company's profits and losses are split among members for tax purposes — typically in proportion to percentage interests, but the members can agree otherwise in writing.

  • Distributions and tax treatment

    When and how cash gets paid out to members, and how the LLC intends to be taxed — as a pass-through entity or, less commonly, as a corporation.

  • Admission, withdrawal and transfer of membership interests

    The approval a new member needs to join, what happens when a member leaves, and any right of first refusal before a member sells their interest to an outsider.

  • Limited-liability preservation language

    The explicit statement that members aren't personally liable for the LLC's debts, plus the formalities that keep that protection intact — the reason most people form an LLC in the first place.

Whether you need an operating agreement — and what the default rules are without one — is set by the state or country where the LLC is formed.

An LLC doesn't exist until it's formed under the law of a specific state or country — typically by filing articles of organization or a certificate of formation with that jurisdiction's company registry and paying its filing fee. That filing is what creates the separate legal entity an operating agreement then governs; without it, there's no LLC for the agreement to attach to.

Whether an operating agreement is legally required, and what happens if you don't have one, are also set locally. A handful of US states require a written operating agreement; most don't, but an LLC formed without one is still governed by that state's default LLC statute — generic rules about management, profit splits and dissolution that apply automatically and may not match what the members actually intend. Other requirements vary too: some states require an LLC's name to include a specific designator (like “LLC” or “L.L.C.”), some require publishing a notice of formation in a local newspaper, and annual filing and franchise-tax obligations differ widely from one state to the next.

The rules for piercing the corporate veil — the circumstances under which a court will disregard the LLC's separateness and hold a member personally liable — are also a matter of state or country law, not something this template can override. This template covers the ground common to LLC operating agreements everywhere: capital contributions, the management election, allocations, distributions and limited-liability language. Confirm your state or country's specific formation and operating-agreement requirements with its company registry, or a local attorney, before relying on this template alone.

Common mistakes to avoid

  • Skipping the manager-managed vs. member-managed election, or leaving it implied rather than stated. Most state LLC statutes default to member-managed if the operating agreement is silent — which may not be what a company with a hands-off investor member actually wants.
  • Commingling company and personal funds. Paying personal expenses from the LLC's bank account, or depositing company revenue into a member's personal account, is one of the fastest ways to hand a court the evidence it needs to pierce the corporate veil.
  • Treating the LLC as a formality-free entity because it's "less paperwork than a corporation." An LLC still needs to be run as a separate legal person — its own contracts, its own records, its own decisions documented — or the liability shield it exists to provide can fail exactly when a member needs it.
  • Assuming an operating agreement isn't required because the state doesn't mandate one. Several states don't legally require an LLC to have a written operating agreement, but without one, the members are governed by that state's default LLC statute — which is rarely what any founder would have chosen on purpose.
  • Copying a template built for a different state's LLC statute without checking it against the rules where the company is actually formed. Filing requirements, statutory defaults and even what counts as "piercing the veil" vary by state or country — see below.

Get your operating agreement signed

Fill in the template above and send it to your co-members for signature with a free Evenseal account — 3 documents a month, no card required. Only need your own copy signed? Self-sign for free with no account at /sign-pdf.

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Not legal advice — LLC formation and operating-agreement requirements vary by state or country; confirm yours with your local company registry or an attorney before relying on this template alone.

Frequently asked questions

Manager-managed vs. member-managed — which do I need?+
Member-managed means every member has a say and the authority to bind the company in the ordinary course of business — it suits a small LLC where all members are actively involved. Manager-managed means the members hand day-to-day authority to one or more designated managers (who don't have to be members themselves), while members who aren't managers step back from daily decisions and keep a vote only on major matters. It tends to fit LLCs with passive investor members, a larger member count, or a member who wants to run the business without checking in with everyone on every decision. Most states default to member-managed if an operating agreement doesn't say otherwise, so this is worth deciding explicitly rather than leaving to the default.
Does an LLC operating agreement protect my personal assets?+
It helps, but the protection ultimately comes from the LLC statute of the state or country where the company is formed, not from the document by itself. The core rule — that members aren't personally liable for the LLC's debts beyond their investment — exists in that statute whether or not you write it down. What the operating agreement does is make the members' obligations to keep the company separate (its own bank account, its own contracts, its own records) explicit, which is exactly the evidence a court looks for when deciding whether to respect that separateness or "pierce the corporate veil" and hold a member personally liable. Skip those formalities in practice, and the document alone won't save the shield.
Partnership agreement vs. LLC operating agreement — which do I need?+
It depends on which entity you formed, or intend to form, not on which document sounds more familiar. A partnership agreement governs a general partnership, where partners are personally liable for the business's debts. An LLC operating agreement governs a limited liability company — a separate legal entity that (if maintained correctly) shields members' personal assets from the company's debts. If you've already filed formation paperwork with a state to create an LLC, you need an operating agreement, not a partnership agreement, even though the two documents cover similar ground (contributions, management, profit splits, dissolution). Partnership Agreement Template.
Is an LLC operating agreement legally required?+
It varies by state or country. A handful of US states legally require an LLC to have a written operating agreement; most don't require one but still enforce it as a binding contract once the members sign it. Even where it isn't mandatory, forming an LLC without one means the company is governed entirely by that jurisdiction's default LLC statute — provisions written for a generic LLC, not the specific deal the members actually made. Check the requirement in the state or country where the LLC is (or will be) formed before deciding a written agreement is optional.
Is an e-signed LLC operating agreement legally binding?+
Generally, yes — an operating agreement signed electronically carries the same legal weight as one signed on paper under laws like the US ESIGN Act and UETA. An operating agreement is an agreement among the members, not a document filed with the state, so it doesn't need to be notarized or filed to take effect (unlike the articles of organization or certificate of formation itself, which some states do require to be filed with a signature meeting their own rules). Are electronic signatures legally binding?.
Can I send this to my co-members to sign online?+
Yes. Download the template above, fill in the blanks, then send it to your co-members for signature with a free Evenseal account — no card required. If you're the only member and just need your own signed copy on file, you can self-sign for free with no account at all. Create a free account.

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