10 Free Sample LLC Agreement Templates

It is quite obvious from the title that a LLC or Limited Liability Company is established because it has minimum number of Liabilities as compared to a corporation or partnership. In simple words, when we talk about a LLC company, it’s the least complicated design for an organization. On one hand, you can benefit from the pass through tax advantages where on the other hand, it gives you protection of your personal assets against any losses or liabilities of your company.

Role of a LLC Agreement in Business:

In order to understand the basic need and importance of a 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 case of a 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 a LLC Agreement:

There are separate sections made in the LLC Agreement and each of this part is very important from legal and business perspectives. But, the most important and key part of the agreement is the definition agreement. This is the part from which the agreement actually starts. In the definition section, the writer defines the terms, jargons and words being used throughout the contract. This is also the part where the name of the company is defined and then that name is used in the entire agreement.
Next important element of a LLC Operating Agreement is the name of the company. This can be as simple as a common name that the owner or members of the company have decided to use or it can be something else i.e. different name. It is also possible that company will use more than one name i.e. will also operate under name of.
Another important part of the LLC Agreement is the definition and explanation of term for the company. This explains as the duration for which you want to run and operate a company. Usually when this point comes in the agreement, it’s mentioned as Perpetual which means for undisclosed time but there are some situations and conditions where the owner or members of LLC can define a specific period of time i.e. 3 years or 5 years. This part will also mention and highlight the date from which the company will start it’s working and operations.
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.
Next most important element of the LLC Agreement is the explanation of 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 that i.e. cash, fixed asset, property or intellectual property.

Here is preview of This First Sample LLC Agreement Template created using MS Word,