On this page, we’ve shared a free operating agreement template for LLCs formed in South Dakota. The agreement was drafted by an attorney and broadly covers most of the important points.
Just give it a nice read and modify it as per your needs.
Before that, here are a few points you should know about this agreement:
What is Operating Agreement?
An operating agreement act as an internal rule book for the LLC. It is a legally binding contract which must be signed and adhered by all the member(s). It is not filed with the South Dakota Secretary of State. Instead, it is kept with along with the business documents at the principal office.
This agreement outlines the nature of the business, rules, and responsibility of each member, how decisions would be made and how profit/loss will be distributed.
Like most of the states in US, drafting an operating agreement is also optional as per South Dakota state laws. But without this agreement, your business may be prone to disputes and lawsuits.
The agreement usually covers :
1) Percentage ownership of each member
2) Membership rights
3) Duties and responsibility of the members or managers
4) Distribution of profit/loss
Below we’ve shared a sample South Dakota operating agreement. You can edit it as per your business needs.
Download South Dakota LLC Operating Agreement (PDF/DOCX)
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: 04/01/2019