10 Free Sample LLC Agreement Templates

You can download these 10 Free Sample LLC Agreement Templates in MS Word format to assist you in preparing such a legal agreement. You can also browse through our posts like Loan Agreement Templates and Maintenance Agreement Templates.

Most people understand from the title that a Limited Liability Company (LLC) is formed when it has fewer debts than either a corporation or partnership. An LLC business is the simplest form of an organization that one can have. To begin with, it is beneficial in terms of taxes because the business passes its profits through to owners who report this income on their individual returns (Form 104). At the same time though, your personal assets are protected against bankruptcy proceedings against it or should something happen like having too much debt or being sued etc. However, several states in the US levy income tax.

Role of an LLC Agreement in Business:

In order to understand the basic need and importance of an LLC Agreement, you should understand how businesses work. If you are running a company single-handedly, you don’t have to report anything to anyone except to the government about your income and tax returns but when you include other partners or members in the case of an LLC company, you will have to deal with other authorities in your company and the best way to deal with them by signing a LLC Operating Agreement. This agreement will not only define the purpose and role of each member or partner in the company but it will also help the members to understand each other’s responsibilities, their rights, and legal obligations.

Key Elements of an LLC Agreement:

Separate sections are defined in the LLC Agreement, each of which is very crucial from legal and business angles. However, the most crucial and central section of the agreement is the definition agreement. It is this section that actually kickstarts the agreement. Within the definition section, the writer defined the terms, jargon, and words used in the entire contract but equally defining part of a company’s name that will be used throughout an agreement was also included here.
Selecting the name of the company is another crucial element of an LLC Operating Agreement. It might just be a name that is familiar with the owner or members of the company; however, it can take on another meaning, and this is a different name. Sometimes a company operates under more than one name like.
A key element in the LLC agreement is defining, and explaining what terms mean within the company. The reason for forming and running a company is also described here. Usually, it is referred to as Perpetual in the agreement meaning continues without knowing an end, however, there are times when a certain period may be specified by its founder or members such as 3yrs or 5yrs.. It will also state the opening and commencement date for the firm.
Personal and detailed information of all owners or members will be included in the agreement. Starting with the name of the owner or each member in the LLC and their contact numbers and street addresses, there will be detailed introduction of each member at this part of the agreement.
The next most important element of the LLC Agreement is the explanation of the contribution from each member. After mentioning the number of actual partners in the LLC, this part of the agreement will explain how much each partner invested in the business and what kind of investment was i.e. cash, fixed asset, property, or intellectual property.