An Illinois limited liability company operating agreement is employed by single and multi-member companies to comprehensively define an entity’s business practices and relationship with its members. This would include important and potentially long-lasting concerns such as their voting responsibilities, meeting schedules, rights to profit, and a host of other topics. The Illinois LLC benefits as an entity from this paperwork as this contract formally declares its tax status.
Illinois business owners determined to form an LLC should be prepared to conduct a reasonable amount of research and, if deemed necessary, meet with a professional regarding the current industry environment. Upon executing this document, the signature member(s) should file it with the company records.
Is it Required in Illinois?
No. Illinois will not require an operating agreement to be put in place when an organizer creates an LLC. However, conscientious business owners and partners will often opt to execute one.
Templates (2)
Single-Member LLC Operating Agreement – Used by LLCs with no more than one (1) member.
Multi-Member LLC Operating Agreement – Used by an LLC with at least two (2) members.
State Definition
“‘Operating agreement’ means the agreement under Section 15-5, whether or not referred to as an operating agreement and whether oral, in a record, implied, or in any combination thereof, of all of the members of a limited liability company, including a sole member, concerning the relations among the members, managers, and limited liability company. The term “operating agreement” includes amendments to the agreement.”
