If you are in the process of forming a Limited Liability Company (LLC) in the state of Arkansas, it is important to understand the legal requirements and best practices for creating your LLC operating agreement. This document outlines the internal structure and rules for your LLC, including ownership structure, management, and financial arrangements. To help guide you in crafting your own operating agreement, we have provided a sample template below.
Before we dive into the sample, it is important to note that your LLC operating agreement should be tailored to the specific needs of your business. This means that you should consult with a legal professional to ensure that your agreement is in compliance with Arkansas state law and properly reflects the needs of your company. Additionally, you should also consider the unique characteristics of your business, such as the number of members, the services you provide, and any other special considerations that may affect your operations.
Now, let`s take a look at a sample Arkansas LLC operating agreement:
ARTICLE I – NAME AND PURPOSE
1.1 Name. The name of the LLC shall be [Insert Name Here] (the “Company”).
1.2 Purpose. The purpose of the Company is to engage in any lawful activity for which a limited liability company may be organized under the laws of the State of Arkansas.
ARTICLE II – MANAGEMENT AND OWNERSHIP
2.1 Management. The management of the Company shall be vested in a Manager. The Manager shall be appointed by the members and shall have the authority to manage the affairs of the Company.
2.2 Ownership. The ownership of the Company shall be divided among the Members who shall have the rights and obligations as set forth in this Agreement.
ARTICLE III – MEMBERS
3.1 Members. The Members of the Company shall be [Insert Names Here]. The Members shall have the powers and duties as set forth in this Agreement.
3.2 Voting. The Members shall vote on all matters requiring a vote as provided in this Agreement.
ARTICLE IV – CAPITAL CONTRIBUTIONS
4.1 Initial Contributions. The Members shall make initial capital contributions to the Company as set forth in Schedule A attached hereto and incorporated herein by reference.
4.2 Additional Contributions. The Members may be required to make additional capital contributions as set forth in this Agreement.
ARTICLE V – ALLOCATIONS AND DISTRIBUTIONS
5.1 Allocations. The profits and losses of the Company shall be allocated among the Members in accordance with their respective ownership interests.
5.2 Distributions. Distributions of the Company’s profits shall be made to the Members in accordance with their respective ownership interests.
ARTICLE VI – TRANSFER OF MEMBERSHIP INTERESTS
6.1 Transfer Restrictions. No Members shall transfer or assign their interest in the Company without the written consent of all other Members.
6.2 Right of First Refusal. If a Member wishes to sell their interest in the Company, they shall first offer the interest to the other Members on the same terms and conditions offered by any third-party purchaser.
ARTICLE VII – DISSOLUTION AND TERMINATION
7.1 Dissolution. The Company may be dissolved by the unanimous vote of the Members or by operation of law.
7.2 Termination. Upon dissolution of the Company, the affairs of the Company shall be wound up as soon as practicable in accordance with the provisions of the Arkansas LLC Act.
This sample operating agreement provides a basic framework for organizing and managing your LLC. However, it is important to work with a legal professional to ensure that your agreement is tailored to your specific needs and in compliance with Arkansas state law. By creating a thorough and well-crafted operating agreement, you can safeguard the future of your business and ensure that your operations run smoothly.