Forming a Limited Liability Company (LLC) involves several critical steps, one of which is obtaining an operating agreement. This document is crucial as it outlines the governance structure and operational rules of your business.
While many LLC formation services offer operating agreements as part of their more expensive packages, it is possible to obtain one for free.
What is an Operating Agreement?
An operating agreement is essential for both single-member and multi-member LLCs. It sets clear rules for financial and management decisions, which helps in preventing misunderstandings among members. In many states, having an operating agreement is also legally required.
How to Get an Operating Agreement?
Typically, when you use a formation service to create your LLC, you will encounter one of the following scenarios regarding the operating agreement:
- Tiered Pricing Plans: Most services offer several tiers of pricing. The basic tier usually omits the operating agreement, which is included only in higher-priced plans often starting at $200 plus state fees.
- Additional Fee Option: During the checkout process, some services provide the option to add an operating agreement for an additional fee. For instance, services like LegalZoom and ZenBusiness offer this add-on for around $99.
Cost-Effective Alternatives
While paying for an operating agreement through a formation service is common, there are ways to obtain it for free:
Northwest Registered Agent
Northwest Registered Agent stands out by offering free operating agreements, regardless of whether you form your LLC through them. They provide:
- Free Templates: Access to three types of operating agreement templates at no cost:
- Single-member LLC operating agreement
- Multiple-member LLC operating agreement
- Member-managed LLC operating agreement
- Formation Package: If you choose to form your LLC with Northwest, the operating agreement is included in their service, which costs $39 plus the state fee.
Accessing Free Templates
You can download these templates directly from Northwest’s website. They provide a straightforward approach to ensuring you have a legally compliant operating agreement without the additional expense.
Why Choose Free Templates?
Opting for a free template from a reputable provider like Northwest Registered Agent can significantly reduce your initial business costs. Additionally, these templates are designed to meet general requirements and can be customized to suit your specific needs.
Next Steps After Obtaining Your Operating Agreement
Once you have your operating agreement, the next steps in setting up your LLC include:
- Obtaining an Employer Identification Number (EIN): This can be done for free directly through the IRS, saving you additional fees that might be charged by formation services.
For guidance on how to secure your EIN at no cost, be sure to check out our article on How to Get an EIN For Free.
Conclusion
Obtaining an operating agreement is a crucial step in forming your LLC, providing a foundation for your business operations and legal compliance. By utilizing resources like Northwest Registered Agent, you can secure this important document for free, allowing you to allocate more resources to other aspects of your business development.
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