If you`re starting a limited liability company (LLC) with another person, it`s essential to create an operating agreement that outlines how the company will be managed and how decisions will be made. An operating agreement is a legal document that helps LLC members avoid disputes and provides a clear understanding of their roles and responsibilities.

To help you get started, we`ve created a sample operating agreement for a two-member LLC. Keep in mind that this is just a template, and you should consult with a lawyer to customize an agreement that meets the specific needs of your business.

Introduction

The operating agreement begins with a brief introduction that outlines the purpose of the agreement and identifies the members of the LLC.

Article I: Formation

This section includes information about the formation of the LLC, such as the date it was formed, the name of the company, and the state where it`s registered.

Article II: Purpose

Here, you`ll describe the purpose of your LLC, which could be anything from providing a specific product or service to investing in real estate.

Article III: Membership

This section covers the membership of the LLC, including how new members can be added or existing members can leave the company.

Article IV: Management

In this section, you`ll describe how the LLC will be managed. This could involve electing managers to oversee the day-to-day operations of the business or having all members share in the management responsibilities.

Article V: Voting

This section outlines how decisions will be made within the LLC, including the number of votes required to pass a resolution.

Article VI: Distributions

Here, you`ll describe how profits and losses will be distributed among the members of the LLC.

Article VII: Dissolution

This section outlines the circumstances under which the LLC can be dissolved, such as by a unanimous vote of the members.

Article VIII: General Provisions

The final section of the operating agreement includes general provisions, such as the governing law, the name and address of the registered agent, and any other relevant information.

In conclusion, creating an operating agreement for your two-member LLC is an essential step in protecting your business and ensuring that everyone is on the same page. Use this sample as a starting point, but remember to customize your agreement to fit the specific needs of your business.