Operating agreements are an essential part of establishing a limited liability company (LLC). This legal document outlines how the company will be managed and operated, including the roles and responsibilities of its members. The state of Tennessee requires LLCs to have an operating agreement in place, and it`s important to ensure it meets state requirements and protects the interests of the company and its members. Using a Tennessee LLC operating agreement template can simplify the process, while also ensuring compliance with state laws.

Here are some key elements that should be included in a Tennessee LLC operating agreement:

1. Company information: The operating agreement should include the legal name of the LLC, the business purpose, and the date of formation.

2. Member information: The agreement should list all members of the LLC and their ownership percentages. It should also outline the roles and responsibilities of each member.

3. Management structure: The operating agreement should specify whether the LLC will be member-managed or manager-managed. In a member-managed LLC, all members are responsible for managing the company. In a manager-managed LLC, certain members or a third-party manager are responsible for management.

4. Voting rights: The agreement should outline how votes will be cast and counted, including how many votes are needed to make decisions or make changes to the agreement.

5. Profit and loss allocation: The operating agreement should outline how profits and losses will be allocated among members.

6. Capital contributions: The agreement should specify how much each member has contributed to the LLC and how additional capital will be raised if needed.

7. Dissolution: The operating agreement should outline the process for dissolving the LLC, including how assets will be distributed among members.

8. Transfer of ownership: The agreement should specify how members can transfer their ownership interests and under what conditions.

9. Dispute resolution: The operating agreement should outline how disputes among members will be resolved, whether through mediation, arbitration, or litigation.

10. Amendments: The agreement should specify how it can be amended and what procedures must be followed to make changes.

Using a Tennessee LLC operating agreement template can save time and ensure compliance with state laws. However, it`s important to customize the agreement to suit the unique needs and circumstances of your company. Consult with a legal professional to ensure your operating agreement meets all state requirements and protects your company`s interests.