- 1). Draft the agreement. Many websites will try to sell you boilerplate forms for each state. Avoid this pitfall. The operating agreement should be your own.
- 2). Set the membership terms. Most importantly, declare how each member's ownership interests are defined in the LLC. Follow these figures with a list of each member's responsibilities. Finally, allocate voting power for members.
- 3). Set the operational terms. The operating agreement must include a plan for the management of profits and losses. Further, you should implement a full management plan. In this manner, the operating agreement begins to look a lot like your business plan. You will also want to establish rules, guidelines and procedures for meetings and the voting process.
- 4). Plan for the future. Members of an LLC invariably want a way out. This can be for several reasons, and should be included in the operating agreement. Structure a procedure for allowing members to sell their shares. Include provisions in case of death or disability as well.
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