If you`re starting a limited liability company (LLC) in Nevada, you`ll need to create an LLC operating agreement. An LLC operating agreement is a legal document that outlines the ownership and management structure of your LLC. In this article, we`ll discuss the importance of an LLC operating agreement and provide you with a template to get you started.
Why You Need an LLC Operating Agreement
An LLC operating agreement is not required by Nevada law, but it`s highly recommended that you create one. Without an operating agreement, your LLC will be subject to the default provisions of Nevada law, which may not be in your best interest. Creating an LLC operating agreement allows you to customize your LLC`s ownership and management structure to fit your specific needs.
An operating agreement can help you avoid future disputes among LLC members. It can also protect your personal liability by clearly outlining the separation between your personal assets and your business assets.
LLC Operating Agreement Template
Here`s a template for an LLC operating agreement in Nevada:
Article I: Name and Purpose
– Name: [Insert the name of your LLC]
– Purpose: The purpose of the LLC is to engage in any lawful activity for which it is organized.
Article II: Members
– Member Names: [Insert the names of all LLC members]
– Percentage Ownership: [Insert the percentage of ownership for each member]
Article III: Management
– Manager(s): [Insert the name(s) of the manager(s)]
– Management Powers: The manager(s) shall have all powers necessary to manage the LLC, including but not limited to, the power to enter into contracts, hire employees, and make business decisions. The manager(s) will be responsible for managing the day-to-day operations of the LLC.
Article IV: Meetings
– Meetings: Meetings of the members shall be held annually, or at any time and place as the members may determine.
Article V: Distributions
– Distributions: Profits and losses shall be allocated to the members in proportion to their percentage of ownership. Distributions shall be made on a regular basis, as determined by the manager(s).
Article VI: Transfer of Membership Interests
– Transfer of Interest: No member may transfer their interest in the LLC without the consent of the other members.
Article VII: Dissolution
– Dissolution: The LLC shall be dissolved upon the vote of a majority of the members.
Article VIII: Governing Law
– Governing Law: This agreement shall be governed by and construed in accordance with the laws of the State of Nevada.
Creating an LLC operating agreement is an important step in starting your business in Nevada. It`s a legal document that outlines the ownership and management structure of your LLC, and can help you avoid future disputes among LLC members while also protecting your personal liability. Use the above LLC operating agreement template as a starting point, but be sure to consult with an attorney to ensure that your specific needs are met.