If you`re looking to start a business with multiple owners, a limited liability company (LLC) may be a good option for you. An LLC is a business structure that provides the limited liability protection of a corporation and the tax benefits of a partnership. In order to form an LLC, you`ll need to create a multi member LLC operating agreement.

An LLC operating agreement is a legal document that outlines the ownership, management, and operating procedures of the LLC. It is essentially a contract between the owners of the LLC that sets out how the business will be run. A simple multi member LLC operating agreement should cover the following key points.

1. Ownership: The operating agreement should clearly outline the percentage of ownership for each member of the LLC. This will help avoid disputes over ownership and make it easier to distribute profits and losses.

2. Management: The agreement should also outline how the business will be managed. This includes appointing a manager or managers to oversee day-to-day operations, and defining the role of each member in making important business decisions.

3. Capital contributions: Members of an LLC typically contribute a certain amount of capital to the business in exchange for their ownership interest. The operating agreement should detail the amount of capital each member is required to contribute, as well as any ongoing capital contributions that may be required.

4. Profit and loss distribution: The operating agreement should also outline how profits and losses will be distributed among the members. This can be based on ownership percentages or other criteria agreed upon by the members.

5. Dissolution: In the event that the LLC needs to be dissolved, the operating agreement should outline the process for doing so. This will help ensure that the process is fair and transparent for all members.

Creating a multi member LLC operating agreement may seem daunting, but with the help of an experienced business attorney, it can be a straightforward process. By taking the time to create a comprehensive operating agreement, you`ll be setting your business up for success and minimizing the risk of disputes down the line.