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Printable Operating Agreement Template for Arkansas

The Arkansas Operating Agreement form is a crucial document that outlines the management structure and operational procedures of a limited liability company (LLC) in Arkansas. This agreement serves as a roadmap for members, detailing their rights, responsibilities, and the distribution of profits. Understanding this form is essential for ensuring compliance and promoting smooth business operations.

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Dos and Don'ts

When filling out the Arkansas Operating Agreement form, it’s important to be careful and thorough. Here are ten things you should and shouldn’t do:

Do read the entire form carefully before starting.
Don't rush through the process; take your time to ensure accuracy.
Do provide complete information about all members.
Don't leave any sections blank; incomplete forms can lead to delays.
Do double-check all names and addresses for spelling errors.
Don't use abbreviations that may confuse the reader.
Do sign and date the form where required.
Don't forget to keep a copy for your records.
Do consult with a legal expert if you have questions.
Don't ignore the specific requirements set by Arkansas law.

Important Details about Arkansas Operating Agreement

What is an Arkansas Operating Agreement?

An Arkansas Operating Agreement is a crucial document for Limited Liability Companies (LLCs) in the state of Arkansas. This agreement outlines the management structure, responsibilities, and operational procedures of the LLC. It serves as an internal document, guiding the members on how the company will function. While it is not required by law, having an Operating Agreement is highly recommended to prevent misunderstandings and disputes among members.

Who should create an Operating Agreement?

All members of an LLC should participate in creating the Operating Agreement. This includes both single-member and multi-member LLCs. Even if you are the sole owner, drafting an Operating Agreement can provide clarity on your business operations and help protect your personal assets. In multi-member scenarios, it is essential for all parties to agree on terms to ensure smooth operations and define roles clearly.

What should be included in the Operating Agreement?

The contents of an Operating Agreement can vary, but it typically includes:

Company Information: Name, address, and purpose of the LLC.
Member Contributions: Details on what each member contributes, whether cash, property, or services.
Management Structure: How the LLC will be managed, whether by members or designated managers.
Profit and Loss Distribution: How profits and losses will be allocated among members.
Voting Rights: Explanation of how decisions will be made and voting procedures.
Amendments: Process for making changes to the agreement in the future.

Is the Operating Agreement filed with the state?

No, the Operating Agreement is not filed with the state of Arkansas. It is an internal document that remains with the LLC and its members. However, it is crucial to keep it in a safe place and ensure that all members have access to it. Having a well-documented agreement can help resolve disputes and clarify responsibilities if issues arise in the future.

Example - Arkansas Operating Agreement Form

Arkansas Operating Agreement Template

This Operating Agreement ("Agreement") is made effective as of the ___ day of __________, 20__, by and between the following members:

Name: ______________________________________
Address: ____________________________________
Phone: _____________________________________

Whereas, the members wish to form a limited liability company (the "Company") under the laws of the state of Arkansas according to the Arkansas Limited Liability Company Act, Arkansas Code § 4-32-101 et seq. Therefore, the members hereby agree as follows:

Name of the Company: The name of the Company shall be ________________.
Principal Office: The principal office of the Company shall be located at ________________.
Business Purpose: The purpose of the Company is to engage in any lawful activity for which limited liability companies may be organized in the State of Arkansas.
Members: The members of the Company and their respective ownership percentages are as follows:

Name: _______________________ Ownership Percentage: ____%
Name: _______________________ Ownership Percentage: ____%

Management: The Company shall be managed by its members. Decisions shall be made by a majority vote of the membership interests.
Capital Contributions: Each member shall make an initial capital contribution as follows:

Name: _______________________ Contribution Amount: $_________
Name: _______________________ Contribution Amount: $_________

Distributions: Distributions of profits and losses shall be made to members in proportion to their respective ownership percentages.
Withdrawal of Members: A member may withdraw from the Company upon providing ___ days' written notice to all other members.
Amendments: This Agreement may be amended only by a written agreement signed by all members.
Governing Law: This Agreement shall be governed by the laws of the State of Arkansas.

IN WITNESS WHEREOF, the members have executed this Operating Agreement as of the date first above written.

_____________________________ (Member Signature)
_____________________________ (Member Signature)