Sba Operating Agreement Template

If you`re starting a small business, one of the most important steps you`ll need to take is forming a limited liability company (LLC). This is where an operating agreement comes into play. An operating agreement outlines the rules, regulations, and responsibilities for running your LLC. It provides guidance for managing your business and clarifies the ownership structure.

Luckily, the Small Business Administration (SBA) provides an operating agreement template that can be customized to fit your specific business needs. Here`s a breakdown of what the SBA operating agreement template includes:

1. Purpose of the LLC: This section defines the purpose of the LLC and what business activities it will engage in.

2. Formation: Here, you`ll outline how the LLC was formed, including the initial contributions from each member, the percentage of ownership each member will have, and the capital contributions of each member.

3. Management: This section covers how the LLC will be managed. You`ll need to decide whether the LLC will be managed by its members or by a manager(s).

4. Members: This section outlines who the members of the LLC are and their respective ownership percentages.

5. Capital Contributions and Distributions: This section explains how much each member will contribute to the LLC`s capital, how profits and losses will be distributed, and how the LLC will handle any additional capital contributions.

6. Books and Records: This section details how the LLC`s books and records will be maintained.

7. Meetings: Here, you`ll outline how meetings will be held and how decisions will be made.

8. Dissolution: This section explains how the LLC can be dissolved, what happens to the LLC`s assets and liabilities, and the procedure for liquidation.

The SBA operating agreement template is an excellent starting point for creating an operating agreement for your LLC. It`s important to note that the template should be customized to fit the specific needs of your business. You may need to consult with an attorney or accountant to make sure your operating agreement is legally sound.

In conclusion, an operating agreement is a crucial document when forming an LLC. It outlines the rules, regulations, and responsibilities for managing your business and clarifies the ownership structure. The SBA operating agreement template is a great resource for small business owners who want to create an operating agreement that is customized to fit their specific needs. Take the time to carefully review and customize the template to ensure your operating agreement is legally sound and protects your business interests.