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Free legal form · Operating Agreement Multi Member

Multi-Member Operating Agreement.

Customize a multi-member LLC operating agreement covering ownership splits, voting, distributions, buy-sell, and transfer restrictions.

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This is a template, not legal advice. Templates work for many situations. Complex matters or jurisdiction-specific issues warrant attorney review.

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When to use

Right for these situations.

When to use
You have two or more LLC members

And want clear written rules.

When to use
Members have different ownership percentages

Reflected in the agreement.

When to use
You want buy-sell provisions

For death, divorce, exit.

When to use
You want transfer restrictions

Existing members get a say.

Common mistakes

What to avoid.

Mistake
Postponing the equity conversation

Ambiguity poisons relationships.

Mistake
No buy-sell provisions

Exits become litigation.

Mistake
Vague distribution rules

Specify timing and tax distributions.

Mistake
Missing tax distribution provisions

Members owe tax on allocated income.

FAQ

Common questions.

How do we decide ownership percentages?
By contribution, role, time, capital, IP. Document the rationale.
What is a tax distribution?
Distribution sized to cover members' tax on allocated LLC income.
What is right of first refusal?
Members must offer interests to existing members before transferring.
How is buy-sell price determined?
Independent appraisal, formula, or fixed price reset annually.
Do all members need to sign?
Yes.
Can it be amended?
Yes, by the vote threshold specified.

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