Operating Contract (Multi-Member, Manager-Managed) (Simple) (New York)

The Operating Contract (Multi-Member, Manager-Managed) (Simple) (New York) is a legal template specifically designed for businesses incorporated as limited liability companies (LLCs) in New York State. This contract outlines the rights, responsibilities, and operational guidelines governing the relationships between multiple members and managers within the company.

The "Multi-Member" aspect of the contract implies that the LLC has more than one owner or member, each of whom has a stake in the company's profits, losses, and decision-making processes. This template is suitable for LLCs with several members who may have contributed capital, property, or services to the business.

The "Manager-Managed" aspect highlights that certain members appointed as managers possess authority and decision-making powers to oversee the day-to-day operations of the LLC. This structure may be particularly relevant when some owners may choose not to actively participate in the management and prefer to delegate administrative tasks to designated managers.

The simplicity of this template suggests that it aims to provide a clear and easy-to-understand agreement that covers crucial aspects of the LLC's operations and governance. It likely includes provisions specifying the members' respective ownership interests, voting rights, profit distributions, and responsibilities in decision-making.

Moreover, the contract may elaborate on the roles and responsibilities of managers, their powers and limits, procedures for manager elections or removal, potential compensation agreements, and limitations on personal liability.

Given that the template is specifically tailored for New York LLCs, it would also address state-specific regulations and obligations imposed by the New York Limited Liability Company Law. These provisions could include mandatory filings, record-keeping requirements, dissolution procedures, and non-compete clauses.

Overall, this Operating Contract template provides a comprehensive legal framework for multi-member, manager-managed LLCs in New York, protecting the rights and clarifying the obligations of all involved parties, while ensuring compliance with relevant state laws.