Operating Agreement
(Managing Member-Managed, Multiple Members) (Short Form) (CA LLC)

Summary

This template is a short form operating agreement for a California limited liability company (LLC) with multiple members, one of whom shall serve as managing member. The LLC will be used to acquire and own an existing identified real estate project or parcel. This template includes practical guidance and drafting notes. California law does not require that an LLC adopt a written operating agreement, however written operating agreements are strongly recommended, particularly for multi-member LLCs. Statutory default provisions concerning the operation of an LLC will apply in many cases unless an operating agreement provides otherwise. Counsel should note that great latitude is afforded to limited liability companies in terms of economic, voting and tax matters and, accordingly, careful consideration should be given to the particular needs of a given enterprise. Consultation with tax counsel is advised in connection with the negotiation and terms of an operating agreement. For a detailed checklist presenting key issues for consideration when drafting an operating agreement for a California LLC, see Operating Agreement Checklist (CA LLC). For other versions of California LLC operating agreements, see Operating Agreement (Single Member, Member-Managed) (CA LLC), Operating Agreement (Member-Managed, Multiple Members) (CA LLC), Operating Agreement (Member-Managed, Multiple Members) (Short Form) (CA LLC), Operating Agreement (Manager-Managed, Multiple Members) (CA LLC) and Operating Agreement (Manager-Managed, Multiple Members) (Short Form) (CA LLC). For more resources on California LLCs, see Limited Liability Company Resource Kit (CA).