Free Term Sheet for LLC Operating Agreement

I. Introduction

This Term Sheet outlines the ownership structure and key provisions of the Limited Liability Company (LLC) Operating Agreement between [Member Name 1] and [Member Name 2] (the "Founders").

II. Formation of the LLC

• The LLC shall be formed under the laws of Delaware on [Date].

• The name of the LLC shall be [Your Company Name], LLC.

III. Ownership Structure

The ownership of the LLC shall be divided as follows:

1. [Member Name 1]: 60% ownership interest.

2. [Member Name 2]: 40% ownership interest.

IV. Capital Contributions

Each founder shall contribute capital to the LLC as follows:

• [Member Name 1] $[Amount]

• [Member Name 2] $[Amount]

V. Management and Voting Rights

• The responsibility for managing the Limited Liability Company shall be entrusted entirely to the members of the LLC.

• Every member shall possess voting rights that are directly proportional to the extent of their ownership interests.

VI. Allocation of Profits and Losses

The distribution of profits and losses among the members shall be conducted according to the percentage of ownership interests held by each member.

VII. Distributions

Distributions of profits are to be made every quarter to members, and these distributions will be in proportion to the respective ownership interests held by each member.

VIII. Transfer of Ownership

No member shall transfer their ownership interest without the prior written consent of the other members, except in the case of death or disability, in which case the remaining member shall have the option to buy out the departing member's interest at a fair market value determined by a third-party appraiser.

IX. Dissolution

The Limited Liability Company shall be dissolved either upon the mutual agreement of all its members or through a vote that achieves the consent of seventy-five percent of the ownership interests.

X. Governing Law

This Operating Agreement is subject to and shall be interpreted following the laws of the State of Delaware.

XI. Effective Date

• This Term Sheet shall be effective upon execution by all parties and shall be incorporated into the LLC Operating Agreement.

This Term Sheet is effective upon the signature of the below-listed members:

Term Sheet Templates @ Template.net