If you already own an LLC in Illinois or are looking to register one, it’s very critical you draft an operating agreement. It can save you from a lot of future hassle.
Why is Operating Agreement Important
The document lays down the roles, responsibilities, and expectation from each LLC member(s) thus preventing any future confusion or misunderstanding. Legally having an operating agreement can also strengthen your position, in case of any liability claims.
Ideally, an Operating agreement should cover the following points:
1) Percentage ownership
2) Profit/Loss Allocation
3) When and how the profits will be distributed
4) Member(s) duties and obligations
5) Dispute resolution process
6) Sale/Transfer of Member share
One thing to note here is as per Illinois state laws, it’s not mandatory to have an operating agreement. But as discussed above not having one is a sign of impending trouble.
Below we’ve shared sample operating agreement template for various types of LLCs in Illinois.
Download Illinois 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