Operating Agreement
(Member-Managed, Multiple Members) (Commercial Real Estate) (IL)

Summary

This template is an operating agreement for a member-managed limited liability company (LLC) with multiple members in Illinois that will acquire and own an existing identified real estate project or parcel. This template includes practical guidance and drafting notes. Illinois 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 an Illinois LLC, see Operating Agreement Checklist (IL LLC). For a manager-managed operating agreement to use in a commercial real estate transaction in Illinois, see Operating Agreement (Manager-Managed, Multiple Members) (Commercial Real Estate) (IL).