Operating Agreement Worksheet

STANDARD CUSTOMIZATION

Below are the standard terms we offer as a starting point for your agreement.
They are intended to be simple, flexible, with room to evolve over time.
If you would like further customization, please let us know over e-mail or by using the form below and we are happy to accommodate.

Ownership - Will be customized as indicated on your LLC form submission.
Management - The company will be managed by each owner proportionate to their ownership percentage.
Capital Contributions - Contributions of cash or resources by the owners will be documented on a separate company ledger.
Vesting Schedule - Each owner will vest their ownership over four years through the performance of services to the company, unless otherwise indicated.
Transfers of Interest - If an owner wants to sell their ownership, the Company has the first right to purchase the ownership before it is sold outside the Company.
Dispute Resolution - Any disputes between the owners will be resolved by mandatory mediation, followed by binding arbitration if necessary.

Further Customization

Name

First Name

Last Name

Name of LLC

ENTITY STATUS

Will this entity serve as a parent, child, or holding company ?

MEMBERS

List all LLC owners and the percentage of ownership.

MANAGEMENT

How will company decisions be made?

CAPITAL CONTRIBUTIONS

What contributions is each owner making toward the business?

PROFIT DISTRIBUTIONS

When will the company make profit distributions?

ACTIVE INVOLVEMENT

Do all owners need to remain actively involved in the operation of the business in order to maintain their ownership interest?

VESTING OWNERSHIP

When members earn their equity through the performance of services, it is common to have them earn their equity over time through a vesting schedule. For example, a common vesting schedule is a four year vesting schedule with a one year cliff, where each member earns 25% of their allocated equity after one year, and the remainder in 36 monthly increments thereafter. This protects the other members in case a member quits the company early.

TRANSFERS OF INTEREST

When can members sell their equity interest outside the company?

INVESTORS

If you'll bring on investors please describe below how ownership interest shall change.

DISPUTE RESOLUTION

In the event of a legal dispute, what legal forum would you like to use to resolve the dispute? ARBITRATION -- faster than litigation, but still expensive, and less opportunity to present evidence. Decisions are non-appealable. ANY LEGAL FORUM -- Permits traditional litigation and any other legal means of resolving disputes. Traditional litigation can take a long time before cases settle or get a judgment, but permits more opportunity for presenting evidence and appealing decisions.

OTHER SPECIFICATIONS

Use this space to clarify any of your answers above.