Every Iowa LLC owner should execute an operating agreement, if not done already.
Without a valid agreement, your LLC will be governed by default state statutes. And in case of any legal issues, default statutes are applicable which will not be in the best interest of your business.
For example, the default LLC statutes mandates that profit and loss be divided equally across all the member(s) of LLC irrespective of the membership interests.
So let’s say in a LLC the membership interest split is 30:70. But without an operating agreement, minority member can claim 50% interest in court.
What is an Operating Agreement?
An operating agreement is an internal document which can be printed on any normal A4 paper. It acts as a rule book highlighting the roles, responsibilities, and duties of each member. It also includes how the possible issues will be addressed or resolved.
The document need not be notarized or filed anywhere. For it to be effective the only requirement is that it must be signed by all the members. Having an operating agreement in place formalizes the business and strengthens the ‘corporate veil‘.
Below we’ve shared a sample Iowa LLC operating agreement for you. You can edit it as per your business needs or use it directly.
Download Iowa LLC Operating Agreement (PDF/DOCX)
Based on the LLC type, download the relevant document.
Disclaimer: The document is shared for reference purpose only. We disclaim all liability and responsibility arising from any reliance placed on the information shared. We encourage you to consult a professional business attorney to get a professional agreement made.
Last Updated: 02/01/2019