An operating agreement LLC template is an essential legal document that every Limited Liability Company (LLC) in California must have. This agreement outlines the rules and regulations of the LLC, including its ownership structure, distribution of profits and losses, and management structure.

In California, an LLC is created by filing Articles of Organization with the Secretary of State. While the state does not require an operating agreement, it is strongly recommended that you have one. Without an operating agreement, California state law will govern how your LLC operates, which may not align with your desired management structure or profit distribution.

A template for an operating agreement can be found online, but it is important to ensure that it is tailored to your LLC’s specific needs. Generic templates may not cover all of the necessary provisions or may not be legally binding.

Here are some key sections that should be included in your operating agreement:

1. Ownership structure: This section outlines who the members of the LLC are and their percentage of ownership. It should also include provisions for the transfer of ownership, such as buy-sell agreements or rights of first refusal.

2. Management structure: This section details how the LLC will be managed. Will it be member-managed, where all members have a say in the decision-making process, or manager-managed, where only designated managers make decisions?

3. Capital contributions: This section outlines how much money each member is required to contribute to the LLC and how future contributions will be handled.

4. Profit and loss distribution: This section outlines how profits and losses will be divided among the members.

5. Dissolution: This section details the process for dissolving the LLC, whether it is voluntary or involuntary.

It is important to have an attorney review your operating agreement to ensure it complies with California state law and protects your LLC’s interests.

In conclusion, an operating agreement is a crucial document for any LLC in California. It sets the foundation for how the LLC is managed and how profits are distributed. A template can be a helpful starting point, but it is essential to customize it to fit your specific needs and have it reviewed by an attorney to ensure it is legally binding and compliant with state law.