Every LLC should have an operating agreement that fits its ownership and risk
An operating agreement documents who owns the LLC, who manages it, who may bind it, how financial rights are handled and what happens when ownership changes. The right option ranges from a basic free agreement for a simple LLC to customized attorney drafting for multiple owners, material assets or special provisions.
Core provisions
Document the rules that matter before a disagreement or transaction.
Ownership and contributions
Identify the members, ownership percentages and initial contribution obligations.
Management and authority
State whether the LLC is member-managed or manager-managed and who may sign for it.
Financial rules
Address allocations, distributions, tax decisions and owner loans or contributions.
Transfers and exits
Establish what happens after death, disability, withdrawal, sale or another proposed ownership change.
Five practical options
Choose the operating agreement level that fits your LLC.
The least expensive option is not necessarily wrong, and the most comprehensive option is not necessary for every company. Compare the document's depth, editability and guidance with the LLC's owners, assets and potential areas of disagreement.
Basic agreement included with Bizee Standard
Bizee's Standard formation package includes a basic operating agreement. It can be a reasonable starting point for a straightforward LLC. The agreement is provided in editable Word format with instructions.
Review Bizee Standard →Chris's free mid-level agreement when you use his Bizee link
Eligible owners who form through Chris's Bizee affiliate link can request his more detailed mid-level operating agreement as part of the Free LLC Starter Kit. It is an editable Word document with clear instructions and goes beyond the basic agreement commonly supplied by formation services.
See the Free Starter Kit →Free agreement demonstrated in Chris's video
The separate free option shown in Chris's video may work as a basic starting point, but the completed document is not amendable. That limitation makes it less flexible when ownership, management or financial provisions need to change.
Watch the free-option walkthrough ↗Paid attorney-created templates
Chris's paid templates provide more comprehensive provisions and guidance without the cost of fully customized drafting. They are supplied in editable Word format with clear instructions so the owner can select and complete the appropriate provisions.
Browse paid LLC templates ↗Customized agreement from Chris or another attorney
Customized legal drafting is often appropriate for multiple owners, unequal economics, investors, succession planning, valuable assets, negotiated control rights or other provisions that should be tailored to the parties and applicable law.
Explore customized legal help ↗A simple decision rule
Increase the level of drafting as ownership, value and risk increase.
A straightforward single-member LLC may be adequately served by a basic or mid-level agreement. Multiple members should not rely on a document that fails to address voting, deadlock, transfers, buyouts, death, disability and exit rights.
A template is still a starting document. When provisions must be negotiated, tax allocations are unusual, investors are involved or the consequences of a mistake are significant, individualized legal and tax advice becomes more valuable.
Use the agreement
The document should match how the LLC actually operates.
Keep the signed agreement with the company records. Update it when ownership, management or key financial provisions change, and make company actions consistent with the authority it establishes.
Start free, use a more comprehensive template, or obtain custom drafting.
Review the documents and assistance available at each level before deciding what your LLC requires.