Our multi-member LLC operating agreement template is expertly crafted by legal professionals to ensure that your business is fully compliant with state regulations and protected from legal liability, giving you peace of mind and security as you grow your enterprise.
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An Alabama multi-member L.L.C. operating agreement is a crucial document for businesses with multiple owners, known as "Members." This agreement outlines each Member's ownership percentage and establishes a shared understanding of the business's operational procedures.
While the State of Alabama permits implied or verbal agreements, having a written contract is always the wiser choice, particularly when members have made investments, also known as "capital contributions."
This document is not submitted to the state; however, every active Member, officer, manager, and registered agent must have a signed and notarized copy in their possession for future reference and legal protection.
Start by filling in your chosen company name, which represents your L.L.C.'s legal identity. This name must comply with Alabama state requirements, including "L.L.C." or "L.L.C." in it. For example, if you're starting a bakery, you could name it "Sweet Treats Bakery, L.L.C."
Firstly, write the effective date of your operating agreement, when the terms and conditions start applying to all members. For instance, if you and your partners agree to begin the L.L.C. on May 1, 2023, that's the date you'll put in these blanks. And then fill in the full names of each Member of the L.L.C. This step is essential for proper identification and accountability in the agreement.
For example, if your L.L.C. has three members named John Doe, Jane Smith, and Mary Brown, you'll write their names in these fields.
Write firstly the date and your L.L.C.'s name again in these blanks, as it appears at the beginning of the document. This reiteration is necessary to clarify the company name in the formation section.
Next, write the name of your business again. In addition, input the complete address of your L.L.C.'s principal business office, which is the primary location where you'll conduct business and receive official mail.
For example, if your office is located at 123 Main Street, Birmingham, AL 35201, that's the address you'll enter here.
Writing the full name of the person or entity serving as your L.L.C.'s registered agent is the next step. This individual or entity is responsible for receiving legal documents and official notices on the L.L.C.'s behalf and must have a physical address in Alabama.
For example, if John Doe is the registered agent, his name should be entered in this field.
Additionally, provide the complete address of the registered agent's office. This must be a physical location within Alabama where the registered agent can be reached during regular business hours. If the registered agent's address is 456 Oak Street, Mobile, AL 36602, you'll enter that address here.
Next you need to specify the date when the L.L.C.'s existence officially begins, which could be the same as the effective date of the operating agreement or a different date chosen by the members. For example, if your L.L.C. begins operations on June 1, 2023, that's the date you'll write in this field.
In this section, each Member of the L.L.C. should print or type their name, followed by their signature. This demonstrates that all members have read and agreed to the terms of the operating agreement. For example, if John Doe, Jane Smith, and Mary Brown are members, they will each print their names and sign.
Step 5
Begin by writing the L.L.C.'s name again, as you did at the beginning of the document. This repetition is necessary to identify the company in the Listing of Members section. Next indicate the date when the Listing of Members is accurate. For example, if the list is correct as of March 1, 2023, you'll write "1" for the day, "March" for the month, and "2023" for the year.
Additionally, list all L.L.C. members' full names and addresses. This information helps to identify each Member and their contact information. For example, write "John Doe, 123 Main St, Birmingham, AL 35201."
Step 6
Here, you should indicate the date when the member listing was authorized. For example, if the member listing was authorized on March 1, 2023, you'll write "1" for the day, "March" for the month, and "2023" for the year.
Next, each Member who has authorized the provision of the Member Listing should print or type their name, followed by their signature. This indicates their agreement and authorization for the Member Listing to be disclosed.
For example, if John Doe, Jane Smith, and Mary Brown are the members who have authorized the listing, they will each print/type their names and sign.
Write here the name of your L.L.C. first. Continue by writing each Member's name, the amount of their initial capital contribution, and their percentage of ownership in the L.L.C. This clarifies the investment made by each Member and their ownership stake. For example, if John Doe contributes $40000 and owns 40%, you'll write "John Doe, $40000, 40%."
Here, specify the date when the Listing of Capital Contributions is accurate. If the capital contributions are recorded on March 1, 2023, you'll write "1" for the day, "March" for the month, and "2023" for the year. In this section, each Member who is signing and agreeing to the document should also print or type their name, followed by their signature.
This indicates their consent to the terms and conditions outlined in the legal document. For example, if John Doe, Jane Smith, and Mary Brown are the members signing the agreement, they will each print/type their names and sign.
As with the previous section, begin by writing the name of your L.L.C. again. Next, list each Member's name and the endorsed value of their interest in the L.L.C. This information determines the value of each Member's stake in the company.
For example, if John Doe's interest is valued at $40,000, you'll write "John Doe, $40,000." Indicate also the date when the Valuation of Members' Interest is accurate. For example, if the valuation is correct as of March 1, 2023, you'll write "1" for the day, "March" for the month, and "2023" for the year.
In this section, each Member who is signing and agreeing to the document should print or type their name, followed by their signature. This indicates their consent to the terms and conditions outlined in the legal document. For example, if John Doe, Jane Smith, and Mary Brown are the members signing the agreement, they will each print/type their names and sign.
In the first field, the notary public will write the name of the state and the county where the document is being notarized. Next, the notary public will write their full name. For example, if the notary's name is "Susan Johnson," she will write "Susan Johnson."
In the following field, the notary public will list the names of the individuals who appeared before the notary to have their signatures acknowledged.
Step 12
Here, the notary public will write the state name where the document is being notarized. In our example, she would write "Alabama."
Finally, the notary public will sign their name here to acknowledge that they have verified the identity of the individuals signing the document and have witnessed their signatures. The notary public will also affix their official seal or stamp in this area, including their name, commission number, and commission expiration date. This is a crucial step in the notarization process, as it helps to verify the authenticity of the notary's involvement.
