The Tennessee Operating Agreement form is a crucial document for limited liability companies (LLCs) in Tennessee, outlining the management structure and operational guidelines of the business. This agreement serves as an internal governing document that helps members define their rights, responsibilities, and profit-sharing arrangements. By establishing clear terms, the Operating Agreement promotes smoother operations and helps prevent disputes among members.
The Tennessee Operating Agreement form serves as a crucial document for limited liability companies (LLCs) operating in the state. This form outlines the internal workings of the LLC, including the management structure, member roles, and operational procedures. It is essential for defining how profits and losses will be allocated among members, ensuring transparency in financial matters. Additionally, the agreement addresses the voting rights of members, providing a clear framework for decision-making processes. By establishing guidelines for meetings and record-keeping, the Operating Agreement helps prevent disputes and misunderstandings among members. Furthermore, it can include provisions for adding new members or handling the exit of existing ones, thus accommodating the evolving nature of the business. Overall, this document is vital for both compliance with state laws and the smooth functioning of the LLC, making it a foundational element for any business venture in Tennessee.
Tennessee Limited Liability Company (LLC) Operating Agreement
This Operating Agreement (the "Agreement") is made effective as of [Date], by and between the following members (collectively referred to as the "Members") of the limited liability company formed under Tennessee law:
In accordance with the Tennessee Limited Liability Company Act, T.C.A. § 48-201-101 et seq., the Members hereby agree as follows:
Article I: Formation
The Members hereby form a limited liability company under the laws of the State of Tennessee (the "Company"). The name of the Company shall be [Company Name]. The principal office of the Company shall be located at [Office Address].
Article II: Duration
The Company shall commence on the date of filing the Articles of Organization with the Tennessee Secretary of State and shall continue until dissolved according to this Agreement or the laws of Tennessee.
Article III: Purpose
The purpose of the Company is to engage in any lawful business permitted under Tennessee law.
Article IV: Member Contributions
Each Member agrees to make an initial capital contribution to the Company as follows:
Article V: Profits and Losses
Profits and losses of the Company shall be allocated to the Members in proportion to their respective capital contributions, unless otherwise agreed upon in writing.
Article VI: Management
The Company shall be managed by the Members. Decisions shall be made by a majority vote of the Members unless a different voting threshold is specified in this Agreement.
Article VII: Distributions
Distributions to the Members shall be made at the discretion of the Members, in accordance with their respective ownership percentages, and in compliance with Tennessee law.
Article VIII: Indemnification
The Company shall indemnify Members to the fullest extent permitted by Tennessee law against any loss or damage incurred as a result of their position in the Company, provided they acted in good faith and in the best interest of the Company.
Article IX: Amendments
This Agreement may be amended only by a written agreement signed by all Members.
Article X: Governing Law
This Agreement shall be governed by and construed in accordance with the laws of the State of Tennessee.
IN WITNESS WHEREOF, the Members have executed this Agreement as of the date first above written.
Member Signatures:
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When filling out and using the Tennessee Operating Agreement form, it is essential to keep several key points in mind. These takeaways will help ensure that your agreement is clear and effective.
By following these takeaways, you can create a solid foundation for your business operations in Tennessee.