A multi member operating agreement for Kentucky is written like a partnership agreement as it contains ownership and financial terms in a contract with the other owners, or ‘members’. The members involved in the agreement should read the form carefully to make sure all verbal negotiations appear the same in the document.
- The agreement is not required by law, but according to Statute 275-177, once it has been authorized the form is legally enforceable.
- Source 275.015(20)
“Operating agreement” means any agreement, written or oral, among all of the members, as to the conduct of the business and affairs of a limited liability company. If a limited liability company has only one (1) member, an operating agreement shall be deemed to include:
(a) A writing executed by the member that relates to the affairs of the limited liability company and the conduct of its business regardless of whether the writing constitutes an agreement; or
(b) If the limited liability company is managed by a manager, any other agreement between the member and the limited liability company as it relates to the limited liability company and the conduct of its business, regardless of whether the agreement is in writing;
How to Write
If you cannot find the details of your LLC you may use the Kentucky Secretary of State business search. The multi-member LLC agreement should contain the following information:
- Legal Name of Entity
- All Members (or only those with over 20%)
- Registered Agent & Address
- Officer(s) – For example: President, Vice President, Secretary, etc.
- Principal Business Location
- Mailing Address
- Financial Terms
- Profit Distribution
- Percentage of Ownership
- Capital Contributions – Itemized by Member
- Signature – Highly recommended to be in front of a Notary Public