29 Best LLC Operating Agreement Templates

1. Clarity of Ownership and Roles
Define member names, ownership percentages, and each member’s role and authority in the LLC to prevent ambiguity in decision-making and profit allocation. Include how changes in ownership or roles are approved and documented.

2. Capital Contributions and Profit Distribution
Specify initial and future capital contributions, valuation methods for in-kind contributions, and the schedule for additional funding if needed. Outline how profits and losses are allocated and when distributions occur to avoid disputes.

3. Governance and Amendment Procedures
Detail the voting rights, meeting frequencies, and decision thresholds for major actions such as adding members or changing the operating agreement. Include a clear process for amendments, including notice requirements and member approval.