Here is a collection of 18 Free LLC Agreement Templates to help you prepare your own LLC Agreements. If you need an agreement for a partnership business, then see our post on Partnership Agreement Templates.
Limited Liability Company comprises of various agreements and LLC Agreement is one of them. It is a pool comprising of the member or manager’s rights, powers and entitlements. This agreement is very intimate in its nature as it is set by the company members, making it an internal one. Main components or details of LLC Agreement include capital accounts, membership interest, distributions of profit, and allocated tax responsibility.
LLC Agreement Templates – Format Guidelines
You can use an LLC Agreement if you are ready to form one and you want to define its business terms. You can also use it when you have already formed it but don’t have an operating agreement yet. This internal agreement plays several roles. It allows you to define the roles each of your company members will play in the funding of the business. Moreover It helps to define the organization’s operating terms. It also helps you in protecting your legal rights and responsibilities. Some of the names LLC Agreement is known by are Bylaws, Operations Agreements, Set up Agreement. It provides for how the entity will be taxed, how income and losses will be allocated, and how property may be distributed.
Who is considered a member?
A member is one who owns a part of LLC. He must have provided a form of capital contribution like money, services or property in exchange for a percentage of ownership interest in the company. Having an LLC Agreement is advantageous over C-Corps or S-Corps. It is much more flexible than its counterparts. The agreement being flexible, you can create rules that govern your business. With less necessary paperwork, it is easier to form and easier to keep in good legal standing. Also, members here are not individually liable for debts and court judgement incurred, thereby enjoying limited liability. Thus all in all, it is a great combination of flexibility and protection.
Free LLC Agreement Templates