Third, store it safely with your other business files. Second, run it by your LLC’s members to get their approval and signatures. First, review it to make sure you didn’t miss any important details. When you’re finished with your draft, you need to do three things. Otherwise, years into the life of your business, you may run into a dispute over something you didn’t include, and you won’t be able to fall back on the operating agreement. Even if you’re a single-member LLC, you should consider including as many sections as possible to accommodate future changes. Still, it’s a good idea to cover as many bases as possible.
Llc operating agreement illinois template free#
If any don’t apply to your LLC, feel free to leave them out. You don’t always need to include all of the above. How your members will split up the remaining assets or debts. Usually, it’s through a majority vote by the members.ĭissolution: What happens when you terminate your LLC. Member Withdrawal: Procedures for the resignation, expulsion, retirement, or death of an existing member.Īmendment Procedures: How your LLC will approve changes to the operating agreement.
Member Additions: The procedure for bringing on new members – how they will be admitted, if they’re entitled to income, any expenses they will owe, their roles, etc. Tax Treatment: Whether your LLC will be taxed as a Sole Proprietorship, Partnership, S-Corporation, or C-Corporation. Management and Roles: The managerial structure and decision-making processes, naming who is in charge or certain operations.Ĭompensation: How members/managers are compensated and reimbursed.īookkeeping: Accounting procedures and member account policies. Ownership Percentage: How much of the company each member owns. Profits, Losses, and Distributions: How income and debts are allocated among members and methods for distributing funds. Term: How long your LLC in Illinois will be valid, typically until you file for termination.Ĭapital Contributions: The amount of money each member has invested in the LLC. LLC Formation: The date you filed or will file your Articles of Organization with the Secretary of State.īusiness Purpose: The type(s) of business your LLC will be doing in Illinois. Registered Agent Information: The name of your registered agent, their address, and contact information. Owner or Member Information: Names and mailing addresses.Ĭompany Information: Your LLC’s name, registered office, and principal office. Whether you’re using a template or starting from scratch, here’s a quick and easy guide for what to include:
While most of these templates are good options, a great starting point is one that you can get free through an affordable LLC service like ZenBusiness or Northwest Registered Agent. Plus, you can find plenty of free templates online to help you with the structure and legal terminology. So, you’ll need to create your own, but don’t be intimidated! You don’t need to be an attorney or expert writer to draft an effective agreement. site doesn’t provide an official form or directions. If you’ve decided to write an operating agreement, but you’re unsure where to start, it’s better to perform a simple Google search than to check the Secretary of State website.