LLC Operating Agreement Generator – Free Legal Member-Managed & Manager-Managed Template

What is an LLC Operating Agreement & Why is it Legally Critical?

An LLC Operating Agreement is the foundational governing legal contract of a Limited Liability Company. It delineates internal operational rules, percentage equity interests, management authorities, voting thresholds, profit distributions, and procedures for member departures or business dissolution.

Why Even Single-Member LLCs Need an Operating Agreement

• Preserving Limited Liability Protection ('Piercing the Corporate Veil'): In civil lawsuits, opposing attorneys routinely attempt to hold owners personally liable by claiming the LLC is a sham alter-ego. An operating agreement proves legal separation between individual and entity.
• Opening Commercial Bank Accounts & Merchant Gateways: Banks (Chase, Wells Fargo, Mercury) and processors (Stripe) mandate providing a signed operating agreement before approving business checking accounts or merchant processing.
• Overriding State Default Statutes: Without a customized agreement, state default LLC laws govern your business—which may mandate equal profit sharing regardless of financial investment.

Frequently asked questions

More tools