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Fillable Operating Agreement Template for California

The California Operating Agreement form is a crucial document that outlines the management structure and operational procedures of a limited liability company (LLC) in California. This agreement serves as a blueprint for how the LLC will function, detailing the rights and responsibilities of its members. To ensure your LLC operates smoothly, consider filling out the form by clicking the button below.

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Overview

In the dynamic landscape of business formation, particularly within California, the Operating Agreement plays a crucial role for Limited Liability Companies (LLCs). This essential document outlines the internal structure and operational guidelines of the LLC, ensuring that all members are on the same page regarding their rights and responsibilities. Key aspects include the distribution of profits and losses, decision-making processes, and procedures for adding or removing members. Additionally, the Operating Agreement addresses how the company will be managed, whether by its members or designated managers, and sets forth the rules for meetings and voting. By establishing clear protocols, this agreement not only helps to prevent misunderstandings among members but also enhances the LLC’s credibility in the eyes of potential investors and financial institutions. As businesses grow and evolve, having a well-drafted Operating Agreement becomes increasingly important, serving as a foundational document that guides the company’s operations and ensures compliance with California state laws.

California Operating Agreement Preview

California Operating Agreement

This Operating Agreement (the "Agreement") is made effective as of ______ [insert date] by and among the members whose names and addresses are set forth below, intending to form a Limited Liability Company ("LLC") under the California Revised Uniform Limited Liability Company Act (the "Act"). The members agree as follows:

Article I: Formation

The name of the LLC is __________ [LLC Name], and the principal place of business shall be __________ [Principal Business Address], or such other place as the Members may from time to time designate. The LLC was formed by filing Articles of Organization with the California Secretary of State as required by state law on __________ [Date of Filing].

Article II: Members

The LLC's initial members are as follows, each with the membership interest shown next to their name:

  • __________ [Member Name] - ______% [Membership Interest]
  • __________ [Member Name] - ______% [Membership Interest]
  • __________ [Member Name] - ______% [Membership Interest]

Additional Members may be admitted as provided in this Agreement.

Article III: Capital Contributions

The Members hereby contribute the following capital to the LLC:

  • __________ [Member Name]: $__________ [Amount]
  • __________ [Member Name]: $__________ [Amount]
  • __________ [Member Name]: $__________ [Amount]

Additional contributions shall be made only upon unanimous consent of all the Members or as otherwise provided in this Agreement.

Article IV: Distributions

Distributions of cash or other assets of the LLC shall be made to the Members in proportion to their respective membership interests, subject to the limitations and conditions set forth in the Act and this Agreement.

Article V: Management

The LLC is to be managed by its Members. Each Member shall have authority and control over the business to the extent provided in this Agreement. Decisions regarding the following matters shall require the unanimous consent of all the Members:

  1. Admission of new Members
  2. Amendments to this Agreement
  3. Disposition of all or substantially all of the LLC's assets
  4. Voluntary dissolution of the LLC

Article VI: Fiscal Matters

The fiscal year of the LLC shall end on December 31st of each year unless otherwise agreed upon by the Members. Proper accounting records shall be maintained by the LLC and shall be accessible to all Members.

Article VII: Dissolution

The LLC may be dissolved in accordance with the Act and upon the vote of Members holding a majority of the membership interests. Upon dissolution, the assets of the LLC shall be distributed first to satisfy liabilities and then to the Members in proportion to their respective membership interests.

Article VIII: Amendments

This Agreement may be amended only by written consent of all the Members.

Signatures

In witness whereof, the undersigned have executed this Operating Agreement as of the latest date written below:

__________ [Member Name] __________________ [Signature], Dated: ______ [Date]

__________ [Member Name] __________________ [Signature], Dated: ______ [Date]

__________ [Member Name] __________________ [Signature], Dated: ______ [Date]

File Characteristics

Fact Name Details
Purpose The California Operating Agreement outlines the management structure and operational procedures for a limited liability company (LLC).
Governing Law This agreement is governed by the California Corporations Code, specifically sections related to LLCs.
Members' Rights It details the rights and responsibilities of the members, ensuring clarity in decision-making processes.
Flexibility The Operating Agreement allows for customization, enabling members to tailor provisions to fit their specific needs.
Dispute Resolution It often includes procedures for resolving disputes among members, promoting a harmonious business environment.
Importance Having an Operating Agreement is crucial for protecting personal assets and defining the LLC's operational framework.
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