Oklahoma LLC Operating Agreement Template

In Oklahoma, 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?

An Oklahoma 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 Oklahoma, but instead remains private. It’s advisable to hire an attorney to ensure your operating agreement is thorough and legally binding.

What Should Your Oklahoma LLC’s Operating Agreement Include?

An Oklahoma LLC’s Operating Agreement should be tailored to the specific needs of the business, but it should generally include the following provisions:

1. Company formation: Include the name of the LLC, its purpose, and the address of its principal place of business.
2. Ownership structure: Specify the names of the members and their respective ownership percentages or units, as well as their capital contributions. 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 structure: Indicate whether the LLC will be managed by its members or by appointed managers, and outline their powers, responsibilities, and decision-making processes.
4. Voting rights: Define the voting rights of members, including the percentage of votes needed to approve certain decisions and any specific voting requirements.
5. Distributions: Describe how profits and losses will be allocated among members, and establish a process for distributing these amounts.
6. Meetings and communication: Outline the frequency and requirements for member meetings, as well as how members should communicate and share information.
7. Admission and withdrawal of members: Establish a process for admitting new members or allowing existing members to withdraw from the LLC, including the valuation and transfer of membership interests.
8. Dissolution and liquidation: Specify the circumstances under which the LLC may be dissolved, and outline a process for winding up and distributing the LLC’s assets.
9. Recordkeeping: Detail the LLC’s recordkeeping requirements, including maintenance of financial and operational records.
10. Amendments: Set forth a procedure for amending the Operating Agreement, typically requiring a majority or supermajority vote of the members.
11. Dispute resolution: Include a dispute resolution clause outlining how conflicts among members or between members and the LLC will be addressed, such as mediation, arbitration, or litigation.
12. Governing law: Indicate the governing law for the Operating Agreement, which would typically be Oklahoma law for an Oklahoma LLC.

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 Oklahoma 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. 

These are general guidelines, and each Operating Agreement should be customized to fit the specific needs of the LLC and its members. Additionally, consulting with an attorney who specializes in business law can help ensure that the Operating Agreement is comprehensive and complies with Oklahoma 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 Oklahoma, 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.