New Hampshire LLC Operating Agreement Template

In New Hampshire, your limited liability company (LLC) is not required to have an operating agreement in place. But it’s highly recommended, as an effective operating agreement can help avoid disputes and lawsuits that could threaten the stability of your LLC. 

What is an LLC Operating Agreement?

A New Hampshire LLC operating agreement is an important legal document that details who owns the business and provides essential information pertaining to member duties. An LLC operating agreement establishes the financial relationship between members and the basics of the working relationships between those members and the managers who oversee daily operations. 

The operating agreement is not filed with the state of New Hampshire, but instead remains private. It’s advisable to hire an attorney to ensure your operating agreement is thorough and legally binding.

What Should Your New Hampshire LLC’s Operating Agreement Include?

Here are some key components that should be included in a New Hampshire LLC’s Operating Agreement:

1. Company formation: Specify the name of the LLC, the date of formation, the registered office address, and the registered agent’s information.
2. Ownership structure: Define the ownership structure of the LLC, including the names of the members and their respective ownership percentages, as well as any capital contributions made by each member. If the LLC has a board of directors, the operating agreement will also include the role and responsibilities of the board members and how they are compensated. 
3. Management and decision-making: Describe how the LLC will be managed, whether by members or a designated manager(s), and outline the decision-making process, voting rights, and procedures for making major decisions.
4. Distributions and profits/losses: Outline the process for distributing profits and losses among members, as well as any specific allocation or distribution rules.
5. Membership changes: Specify the procedures for adding new members, transferring membership interests, or handling the departure of a member, including any buyout or buy-sell provisions. Also, and operating agreement should specify what happens when a member sells their interest, becomes disabled, or dies.
6. Meetings: Detail the requirements for member and manager meetings, such as frequency, notice, quorum, and voting rules.
7. Dissolution: Outline the process for dissolving the LLC, including the triggering events, the distribution of assets, and the payment of any outstanding liabilities.
8. Recordkeeping: Define the LLC’s recordkeeping requirements, including the maintenance of financial records, tax documents, and other relevant records.
9. Amendments: Establish the process for amending the Operating Agreement, such as requiring a majority or unanimous vote of the members.
10. Miscellaneous provisions: Include any additional provisions relevant to the LLC, such as dispute resolution, indemnification, governing law, and severability clauses.

An LLC operating agreement provides legal and financial recourse for a number of situations. If conflicts arise between LLC owners pertaining to any of the above issues, the operating agreement will provide clarity. The specific language of the operating agreement lays out exactly how such conflicts will be resolved, how the business is structured, the dynamics of operations, and more. 

Though New Hampshire has default rules on the books that address some of the issues that might arise between LLC members, your LLC operating agreement would override these default laws and give you greater control. 

Consulting with a legal professional can help ensure that the Operating Agreement is comprehensive and complies with all relevant state laws and regulations.

How Much Does an Operating Agreement Cost? 

Creating an operating agreement is free if you just draw it up yourself. Alternatively, you can pay for guidance from an online business advisory like ZenBusiness.

This is an extremely important document, so it’s recommended that you hire a professional service or law firm. If you choose to use an attorney to help you create this document, the price will be around $500 for a single-member LLC and $2,500 for a multi-member LLC. 

Who Needs my LLC Operating Agreement?

One of the key reasons to have an operating agreement in place is that it makes your LLC more appealing to financial backers. Banks are likely to request to see your operating agreement when you apply for a loan. If you seek funding from investors, they will also want to see your operating agreement. 

Conclusion 

Though not legally required in New Hampshire, an operating agreement is a crucial document for LLC operations, ensuring your company is able to access adequate financing and settle any disputes. Keep in mind, you do not need to file your operating agreement with any state body. You simply need to take certain steps to ensure it’s legally binding and keep it in your records. 

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