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1. Answer a number of
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Create Your LLC Operating Agreement Checklist

1. Decide a name for your LLC
2. Principal Office
3. Registered Agent/Office
4. Initial members
5. Decide the ownership interests of each member
6. Decide the amount of capital each member will contribute.
7. Will any members be granted an interest solely for the performance of services?

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Multi-Member Operating Agreement

It is extremely important for all multi-member LLCs to have a LLC Operating Agreement. An LLC Operating Agreement will greatly reduce financial and management misunderstandings, and assure your business is governed by your own rules, not default rules created by your state. Even though the LLC Operating Agreement is not required to be filed with any state agency, it is unwise to operate an LLC without an LLC Operating Agreement.
The Operating Agreement governs the operation and management of the LLC. It describes the business and economic arrangement of the members. The LLC agreement generally specifies, among other things, the business name, the official business address, the identities of the members, the way in which cash is distributed to the members, the way in which profits and losses are to be divided between the members, and how the company will be managed. The Operating Agreement should also reflect each member’s financial contributions to the LLC and the member’s ownership interests.


The members of a limited liability company (“LLC”) will benefit from the limited liability associated with a LLC as well as the benefit of a single level of tax and the flow-through of business losses.

A multi-member LLC can be either treated for tax purposes as a partnership or a corporation, including an S corporation. To be treated as a corporation, an LLC has to file a Form 8832, Entity Classification Election, and elect to be taxed as a corporation. A multi-member LLC that does not so elect will be classified by the IRS as a partnership. A single member LLC can be either treated for tax purposes as a corporation or a single member “disregarded entity”.


Disclaimer: The information provided in this site is not legal advice, but general information on legal issues commonly encountered. Neither myLLCoperatingagreement.com nor myLLCagreement.com is a law firm and neither is a substitute for an attorney or law firm. This site is not intended to create an attorney-client relationship, and by using myllcoperatingagreement.com or myLLCagreement.com, no attorney-client relationship will be created with myllcoperatingagreement.com or myLLCagreement.com.

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