Illinois Operating Agreement Legal Forms Packages
Our Illinois Operating Agreement legal form package includes 3 form operating agreements that you can chose and modify as your needs may require. Our form package includes a basic Operating Agreement form that covers the most basic terms that should be included in most company Operating Agreements. Our package also includes a robust operating agreement that includes detailed provisions. We also include an “in-between” document that is a compromise between the more robust and the very simple.
Our Illinois Operating Agreement Form Packages also include a variety of resolutions and other documents that will assist you with finalizing your LLC. Our packages do not include the rather simple document that must be filed with your state to commence your LLC. We provide information on how to form your own LLC in your state, together with links to forms and other information that is provided by your state.
Order Illinois LLC Operating Agreement Forms
Illinois Limited Liability Operating Agreements
A limited liability company organized in Illinois creates a separate legal entity and provides insulation from liability that is similar to a corporation. There are some key differences between an LLC and a corporation. On such difference is that the owners of a corporation are generally referred to as “shareholders” while the owners of an LLC are generally referred to as “members.”
State LLC laws generally provide more flexibility for the members to agree between themselves regarding the terms of ownership, control, govern, and operate the company. In an LLC, the terms of ownership between the members is set forth in an Operating Agreement.
What is an LLC Operating Agreement?
Every Illinois limited liability company is required to have an Operating Agreement that lays out the terms of ownership between the members. The Operating Agreement usually contains the terms of ownership and other terms that are ordinarily contained in the Bylaws of a corporation. Additionally, the Operating Agreement usually includes terms agreements between the owners that are normally included in a shareholder agreement.
As with all of our legal form packages, we strongly recommend that you have an attorney review your Operating Agreement. Each company will have differences that must be reflected in the Operating Agreement.
Usual Contents of LLC Operating Agreements
LLCs organized under Illinois law have a lot of flexibility regarding the terms that they may include within the Operating Agreement. In general, most operating agreements will include, at a minimum, terms relating to:
- The rights and obligations that are tied to ownership of a membership interest
- The percentage of interests or number of membership interests that are owned by the individual members
- How the LLC will be managed
- Voting rights that are tied to each membership interest
- An agreement regarding disposition of membership interests when a member withdraws or is required to withdraw from the LLC
- Terms relating to dissolution and liquidations of the LLC
- Terms that restrict the transfer of interests or pledging and interest as collateral for a loan
- Qualifications of members
There may be a variety of other terms contained in an Operating Agreement, but the above are generally contained in even the most basic operating agreement.