LLC Operating Agreement (template + instructions)
Free LLC Operating Agreement Downloads
After you’ve completed and signed your LLC’s Operating Agreement, you can then apply for your Federal Tax ID Number (also known as your LLC’s EIN) from the IRS: Federal Tax ID Number (EIN).
Matt Horwitz has been the leading expert on LLC education for the past decade. He founded LLC University in 2010 after realizing people needed simple and actionable instructions to start an LLC that other companies weren't offering. He's cited by Entrepreneur Magazine, Yahoo Finance, and the US Chamber of Commerce, and was featured by CNBC and InventRight.
Matt holds a Bachelor's Degree in business from Drexel University with a concentration in business law. He performs extensive research and analysis to convert state laws into simple instructions anyone can follow to form their LLC - all for free! Read more about Matt Horwitz and LLC University.
Matt holds a Bachelor's Degree in business from Drexel University with a concentration in business law. He performs extensive research and analysis to convert state laws into simple instructions anyone can follow to form their LLC - all for free! Read more about Matt Horwitz and LLC University.
HI Matt,
Thank you for all of your help and information sharing. I want to open an LLC b/c i am an independent software consultant. I want to have both my husband and I as owners of the LLC since we live in Texas. My question is that my husband wants to do his own business of heavy equipment services since he owns his own equipment, can we use the same LLC?
Hi Mary, you’re very welcome. An LLC can engage in multiple business activities (see Can I use one LLC for multiple businesses?), however, you could use two separate LLCs. You’re not forced to go one way or the other.
Hey,
I am a non-US- resident interested in forming an LLC with a US resident based in California.
The main purpose of forming this LLC is I want to run my online store in the US. And for the PayPal business account, I need an LLC. So, my friend is ready to act as my office manager and I’m planning to give him 20% ownership of the LLC. The issue is an 800 $ franchise fee. We want to avoid it. We don’t have any specifications about the state. Is it possible that we can form an LLC in some other state? Will my US friend has to visit that state, in order to get a bank account, opened for our LLC?. Will, he able to work as an office manager if the LLC is registered in some other state?
Also, I have a hypothetical scenario that our LLC has done the business of net 20,000 $ in the financial year. The net profit is 5000$. What will be the taxes on it considering the company is California based?
There will be any taxes on Non-US citizen members of that company?
Really looking forward to hearing from you.
Regards,
Hi Usama, California is waiving the $800 annual franchise tax for the first taxable year (if the LLC is formed in 2021 or later). If you form an LLC in California, there are tax filings for non-residents and for residents (and for the California LLC). You’ll want to speak with a local accountant about that. If you form an LLC outside of California and your business partner wants to open a bank account in California, it would need to be at a bank like Wells Fargo or Bank of America. You can also open a bank account online with Mercury. We’ve written about Mercury here: non-US resident opening LLC bank account. Hope that helps.
Hello
My question is, that I established a slg member LLC in SC, to put multiple rental properties under, however, when I created, I didn’t call it a holding company. Do I need to change it. I’m a resident of FL, but my register agent is in SC, where the properties are.
HI Leatha, that is not a holding company. A holding company is an entity that owns other entities. For example, an LLC or Corporation that owns another LLC or Corporation. And a holding company isn’t made a holding company by its name. It’s simply a holding company by nature of the assets it owns. In your case, you have an LLC that owns multiple properties. It’s simply just an LLC that owns properties. You registered the LLC in the proper location; the location where it is transacting business (South Carolina). Hope that helps.
Thank you!! The video made this much easier. I appreciate the clarity of the notary at the end, too. Very concise and helpful!
You’re very welcome! So glad it was helpful :)
hello, thanks for the video, im going to print it out but how would i use goggle docs to do it on the computer since i have a MacBook pro and not word
Hi Phil, you’re very welcome! You can download it here: LLC Operating Agreement Template (Google Docs). You just need to select “Make a copy” and it’ll appear in your Google Drive. Hope that helps!
Hi Matt…
First of all i want to thank you very much for all your help and efforts for the people. God bless you.
I want to form an LLC in Florida from outside USA. All of the business will be managed from outside USA and I will have no offices or employees in the states. For the purpose of Bank Account opening only,
1. Can I nominate some friend from US as LLC Manager and authorize him to open a bank account on behalf of LLC ?
2. If after opening bank account, I remove him as LLC Manager, will he have any tax liabilities ?
Thanks in advance for your valuable help and feedback.
Hi Nelson, you’re very welcome! 1) I believe so, but it’s best practice to call the bank and check on these procedures. Each bank is a bit different. 2) I don’t think so, however, might be a good idea to ask an accountant. Hope that helps.
Hey Matt…greetings from Grand Rapids, Michigan.
Excellent program and service you have provided for us devoted “DIYourselfers” out here. Very much appreciated!
Q: I am in the process of forming an IRA/LLC (single member arrangement) with Sunwest Trust, Inc. As such, in VIII. SIGNATURES OF MEMBERS, would I list “Sunwest Trust, Inc – the owner of the LLC – together with their representatives signature?….or would I simply list my name and signature.
Thank you sir!
Hey Matt…this is just a follow up on my question of earlier today. After doing a little more research, In my described situation, might the appropriate section VIII Signature sign off read “Sunwest Trust, Inc FBO Randall D. Passeno, LLC” ?
Again, appreciate your thoughts.
Randy
Hey Randy, thanks for the kind words :) We don’t cover IRA/LLCs at this time. You may want to run that by an attorney. And it’s best practice to have an IRA-specific Operating Agreement. Hope that helps.
Matt.
Thank you very much for all the valid information.
My husband and I owns a vacation rental property in Orlando, in the process of buying a rental property in Pensilvania and we live in New York.
We are creating the LLC. Should we create one per property in each estate?
Regards
Adriana D
Hi Adriana, you’re very welcome. There are so many ways to look at this. You could form 1 LLC and register it as a foreign LLC in each state where there’s real estate. You could form a different LLC for each state, located where it owns property. You could form a holding company, say, in Wyoming. That Wyoming company could own the “child” LLCs; each formed in the state where the property is located. There are lot of details and factors to consider. Something like this is best to run by a few real estate attorneys. Hope that helps.
Thank you so much for your help! I learned so such from your video.
You’re very welcome Ken. We’re happy to hear that!
Hello Matt
I suddenly found your video on youtube and became very confused. hope you will reply me. Here is the situation.
* I am a non resident and want to open LLC including a Bank account with a resident partner who lives in Atlanta, Georgia.
We will not have any physical office or employee in USA. My partner will use her address as a home based office n do all paper work for bank & all other work will be done by me from abroad.
The business is mainly Amazon FBA & Drop-shipping.
* All the agents I talk about it they all suggested to file LLC in Delaware & my partner can open bank account near her home.
Please advice.
* I also can’t find the proper ans for this as well:
My brand/domain is “Zclothing”, for LLC I have to use “Zclothing LLC”
My question is: can I legally use only “Zclothing” & cut off LLC from domain, branding & logo?? or I have to file a DBA for it??
One agent says Its ok without DBA in Delaware but another agent says I need DBA to use only name without LLC.
Please Help!
I am very confused about all these and don’t know what to do!
Regards
Tajrinal Zannat
t_zannat@yahoo.com
Hi Tajrinal, apologies for the slow reply. If your US partner is helping run the business from Georgia, then it’s best to form there. You could form in Delaware, Georgia is where the activity is taking place (where the business is legally operating). You don’t need “LLC” in the domain name, however, to use it in branding and marketing, it’s best practice to also file a DBA. Hope that helps!