Sample S Corp Operating Agreement

If you`re a business owner who`s considering structuring your company as an S corporation, it`s important to have an operating agreement in place. An operating agreement is a legal document that outlines how your business will operate, including the rules and responsibilities of each member.

A sample S corp operating agreement is a document that can guide you in creating your own custom agreement. It`s important to note that each business`s operating agreement will be unique based on its specific needs and circumstances. However, having a sample agreement to reference can be helpful in understanding the types of provisions that should be included.

Here are some key provisions that should be included in a sample S corp operating agreement:

1. Ownership and Membership: The operating agreement should outline the ownership structure of the S corporation, including the number of shares and percentage of ownership held by each member. It should also list the names and addresses of all members.

2. Management and Decision-Making: The operating agreement should specify how the S corporation will be managed and how decisions will be made. This includes outlining the roles and responsibilities of each member and detailing how voting on decisions will be conducted.

3. Capital Contributions and Distributions: The operating agreement should outline the initial capital contributions made by each member and how additional contributions will be handled. It should also specify how profits will be distributed to members.

4. Transferability: The operating agreement should address how ownership interests can be transferred and under what circumstances, as well as any restrictions on transfers.

5. Dissolution and Termination: The operating agreement should outline the process for dissolving the S corporation and distributing assets to members.

Having a well-crafted operating agreement in place can help prevent disputes and misunderstandings among members, and can also provide a clear framework for making decisions and managing the business. By using a sample S corp operating agreement as a starting point, you can develop an agreement that is tailored to the specific needs of your business.