Home/MusicMusic/LLC Operating Agreement

LLC Operating Agreement

For one or more people forming an LLC, whether it's a solo venture or a shared business with multiple members.

Drafted by a Harvard Law entertainment attorney.

How would you like this contract?

Pick an option to continue.

Custom Contract

Answer a few guided questions and we'll create your contract with your answers built in. E-sign or download when you're done.

Recommended for most users

Answer a few questions

About 2 to 5 minutes

Editable Template

Download a blank version in Word or PDF that you fill out yourself. Every spot to fill is highlighted in yellow.

Get the blank template

Download instantly

Custom Contract or Editable Template?

Compare the two options before you choose.

Feature	Custom Contract	Editable Template
Best for	Most users	Editing everything yourself
How it works	Answer guided questions	Fill highlighted fields yourself
Word and PDF	Yes	Yes
E-signature	Yes	No
Time required	About 2 to 5 minutes	Depends on your edits
Price	$50	$50

Need more than one contract? The Industry Plan covers every contract in your industry for one year for $150.

See the Industry Plan

Is this the right contract for your business?

This contract is built for the owners of a limited liability company. It fits single-owner and multi-owner companies that want clear rules for ownership, money, management, voting, and what happens if a member joins, leaves, or the company winds down.

Good fit for

Business founders forming an LLC
Company members and owners
Partners starting a venture together
Single-owner companies setting their own rules
Family or group businesses

You may also need

Non-Disclosure Agreement - before sharing private business plans
Hired Services Agreement - when the company hires contractors
Merchandise Licensing Agreement - if the company licenses a name or design
Merchandise Manufacturing Agreement - if the company produces products
Social Media Manager Agreement - when the company hires a social manager

What's Inside This Contract

Formation, purpose, and term

Sets the company name, principal office, business purpose, and duration.

Tax classification

Sets how the company is treated for federal tax purposes and tax filing duties.

Members and ownership

Lists the members, ownership interests, and transfer restrictions.

Management and voting

Sets who manages the company and what decisions need approval.

Capital contributions and distributions

Covers contributions, profit and loss allocations, and distributions.

Banking, indemnification, and member changes

Covers bank accounts, indemnifying members, and any buy-sell or removal terms.

Dissolution

Sets how the company is wound down and assets are distributed.

Disputes and general provisions

Covers standard terms such as notices, how disputes are handled, and signatures.

Not sure what a section means? Every contract you create includes a built-in "Explain Sections" view with a plain-English note for each part of the document.

Before you start

It helps to have these details on hand before you create your contract:

The company name and state
The members and their ownership percentages
Each member's capital contribution
How profits and losses are split
The management structure and voting rules
The tax classification
Rules for transferring ownership or removing a member
How the company can be dissolved

Points Worth Negotiating

Each member's ownership share and contribution
How profits and losses are divided
Who manages the company and how decisions are made
What happens when a member wants to leave or sell
How the company can be dissolved

Frequently Asked Questions

What is an LLC operating agreement?

An LLC operating agreement is the agreement among the members of a limited liability company. It sets out ownership, money, management, voting, and what happens if a member joins or leaves.

Who should sign it?

Every member of the company signs. Each signature confirms the ownership splits, the management and voting rules, and the terms for member changes.

Do I need one if I am the only owner?

Yes. A single-member company uses one to record how the business is run and to keep company matters separate from personal ones.

How are profits usually divided?

Profits are divided in line with ownership percentages, but members can agree to a different split. The agreement records how profits and losses are shared.

What should I have ready before creating it?

Have the company name and state, the members and their ownership percentages, capital contributions, the profit split, the management and voting rules, the tax classification, and transfer and dissolution terms.

What happens if a member wants to leave?

A dedicated section covers buyout terms, how a share is valued, and whether other members can approve or block a transfer.

Should I choose the custom contract or the editable template?

Choose the custom contract to answer a few questions and have it filled in for you. Choose the editable template if you prefer a blank version with labeled fields to complete yourself.

What are common warning signs in an LLC operating agreement?

These are common issues to watch for in any LLC operating agreement:

No clear ownership percentages
Vague management or voting rules
No process for a member leaving
No restrictions on transferring ownership
No plan for resolving disputes

Create Your Contract Browse all Music Contracts