Not required by statute: members 'may' enter into an operating agreement, which may be oral, in a record, implied, or a combination (805 ILCS 180/15-5(a), 1-5). Fill in the form to build a Illinois operating agreement for a single-member or multi-member LLC, governed by the Limited Liability Company Act. Download it as PDF or Word and keep the signed copy with the company records; it is not filed with the state.
This template is a starting point, not legal advice, and Jupid is not a law firm. LLC law differs by state, and Illinois courts apply Illinois law. Have an attorney licensed in your state review the agreement before every member signs, especially if members contribute property, receive unequal rights, or plan to bring in investors.
Company
Governed by the Limited Liability Company Act. Not required by statute, but strongly recommended. Illinois rules
Owners
Member
Management
Match what your Articles of Organization says, if it states the management structure.
Taxes
Succession
Lets the LLC continue without a gap in ownership. Coordinate with your will or trust.
Live preview: 11 articles
A Illinois single-member, member-managed limited liability company
This Operating Agreement (this "Agreement") of Blue Harbor Studio LLC (the "Company") is made effective as of March 2, 2026 (the "Effective Date") by its sole member listed in Schedule A (the "Member").
1.1 Formation. Blue Harbor Studio LLC (the "Company") was formed as a Illinois limited liability company on March 2, 2026 by filing its Articles of Organization with the Illinois Secretary of State. The Limited Liability Company Act (the "Act") and this Agreement govern the Company. Where this Agreement differs from a default rule of the Act, this Agreement controls to the extent the Act allows.
1.2 Purpose. The purpose of the Company is graphic design, branding and marketing services, and any other lawful business for which a limited liability company may be formed under the Act.
1.3 Principal Office. The Company's principal office is at 1200 Main Street, Suite 300, Springfield, IL, or at another place the Member chooses.
1.4 Registered Agent. The Company's registered agent and registered office in Illinois are those stated in its most recent filing with the Illinois Secretary of State.
1.5 Term. The Company continues until it is dissolved and its affairs are wound up under Article 10.
2.1 Sole Member. Alex Rivera (the "Member") is the sole member of the Company and owns 100% of the membership interests. The Member's address and Capital Contribution are listed in Schedule A.
2.2 Capital Contribution. The Member has contributed or will contribute the money, property or services stated in Schedule A. The Member is not required to make any additional contribution but may do so at any time.
2.3 No Interest on Capital. The Member earns no interest on its Capital Contributions. A loan from the Member to the Company is not a Capital Contribution.
3.1 Profits and Losses. All profits and losses of the Company are allocated to the Member.
3.2 Distributions. The Member decides when the Company makes distributions and in what amounts.
3.3 Limits on Distributions. The Company will not make a distribution if, after the distribution, the Company could not pay its debts as they become due in the ordinary course of business, its total liabilities would exceed its total assets, or the distribution would otherwise violate the Act.
4.1 Classification. The Company has one Member. Under Treasury Regulations Section 301.7701-3(b)(1)(ii), it is disregarded as an entity separate from its owner for federal income tax purposes unless the Member elects otherwise by filing IRS Form 8832 or Form 2553. Being disregarded for income tax purposes does not change the Company's separate legal existence or the Member's limited liability under the Act.
5.1 Management by the Member. The Company is member-managed. The Member has full authority to run the business, sign contracts, open accounts and take any other action for the Company. The Member may act by signing a written consent and is not required to hold meetings.
5.2 Officers and Agents. The Member may appoint officers or agents, give them titles and delegate authority to them in writing.
6.1 Transfers. The Member may transfer all or part of its membership interest. A person who receives the Member's entire interest is admitted as a member when the transfer takes effect.
6.2 Additional Members. The Member may admit additional members by written consent. When a second member is admitted, the members will sign an amended operating agreement that covers voting, distributions and transfers. Once the Company has two or more members, it is classified as a partnership for federal income tax purposes unless it has elected to be taxed as a corporation.
7.1 Successor on Death. On the Member's death, the person who inherits the Member's interest under the Member's will or trust or under the laws of intestacy succeeds to the Member's entire interest and is admitted as the member effective as of the date of death, so that the Company continues without dissolution. Until the successor is admitted, the Member's personal representative may exercise all of the Member's rights to manage the Company.
7.2 Incapacity. If the Member becomes unable to manage the Company because of a physical or mental condition, the Member's agent under a durable power of attorney, or a court-appointed guardian or conservator, may exercise the Member's management rights until the Member can act again.
8.1 Books and Fiscal Year. The Company keeps complete and accurate books of account. Its fiscal year is the calendar year unless tax law requires otherwise, and its books are kept on the cash or accrual method the Member chooses for its tax returns.
8.2 Records. The Company keeps the records required by 805 ILCS 180/1-40, at the location that section requires, including a copy of its Articles of Organization and all amendments, this Agreement and all amendments, a current list of its Member with addresses, Capital Contributions, and its federal, state and local tax returns and financial statements for at least the three most recent years.
8.3 Bank Accounts. All Company money is deposited in accounts in the Company's name and used only for Company purposes. Company funds are never mixed with the personal funds of the Member. The Member, and anyone they authorize in writing, may sign on Company accounts.
8.4 Separate Existence. The Company holds itself out as a legal entity separate from the Member. It signs contracts in its own name, pays its debts from its own funds, keeps its own books and accounts, and does not pay the personal expenses of the Member. These practices help preserve the limited liability the Act gives to the Member.
9.1 Limited Liability. To the fullest extent the Act allows, no Member or officer is personally liable for any debt, obligation or liability of the Company, whether arising in contract, tort or otherwise, solely because of that role. A failure of the Company to observe formalities is not a ground for imposing personal liability on the Member.
9.2 Exculpation. No Member or officer is liable to the Company for any act or omission in good faith on behalf of the Company, except for gross negligence, willful misconduct, a knowing violation of law, a transaction from which the person received an improper personal benefit, or a breach of this Agreement.
9.3 Indemnification. To the fullest extent the Act allows, the Company will indemnify and hold harmless the Member and each officer against losses, judgments, settlements and reasonable legal fees arising from claims related to the Company's business, except for conduct listed as an exception in Section 9.2. The Company may advance legal fees if the person agrees in writing to repay them if it is later determined that the person was not entitled to indemnification.
9.4 Insurance. The Company may buy insurance on behalf of any person it may indemnify.
10.1 Events of Dissolution. The Company dissolves only on:
10.2 Winding Up. On dissolution, the Member will wind up the Company's affairs, sell or distribute its assets, and file the dissolution or cancellation documents the Illinois Secretary of State requires.
10.3 Order of Payment. Company assets are applied in this order: first, to creditors, including the Member if it is a creditor, in satisfaction of the Company's debts; second, to reasonable reserves for contingent liabilities; and third, to the Member.
11.1 Governing Law. This Agreement is governed by the laws of the State of Illinois, including the Limited Liability Company Act (805 ILCS 180/1-1 et seq.).
11.2 Entire Agreement. This Agreement, including its schedules, is the entire agreement of the Member about the Company and replaces any earlier oral or written agreement on the same subject.
11.3 Amendments. This Agreement may be amended only by a writing signed by the Member.
11.4 Severability. If any provision of this Agreement is held invalid or unenforceable, the rest of the Agreement stays in effect, and the provision is enforced to the greatest extent allowed.
11.5 Binding Effect; No Third-Party Beneficiaries. This Agreement binds and benefits the Member and its permitted successors and assigns. No creditor or other third party may enforce it.
The Member signs this Agreement effective as of the Effective Date.
Date: ________________
| Member | Address | Capital contribution | Percentage interest |
|---|---|---|---|
| Alex Rivera | 48 Oak Lane, Springfield, IL | $5,000 (Cash) | 100% |
| Total | $5,000 | 100% |
Template from jupid.com. Not legal advice; Illinois law varies, so have an attorney review this document before signing.
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LLC statute
Limited Liability Company Act (805 ILCS 180/1-1 et seq.)
Required?
Not required by statute: members 'may' enter into an operating agreement, which may be oral, in a record, implied, or a combination (805 ILCS 180/15-5(a), 1-5).
Filed with the state?
No. You file the Articles of Organization with the Illinois Secretary of State; the operating agreement stays with the company records.
What the statute calls it
operating agreement
Records rule
Yes: the LLC must keep copies of any then effective written operating agreement and amendments (and financial statements for the 3 most recent years) at its principal place of business or another location specified in the operating agreement (805 ILCS 180/1-40(a)(4)).
Annual or biennial report
Annual Report (Form LLC-50.1), $75 (plus $50 per series with a certificate of designation), due before the first day of the anniversary month (the month the LLC was organized); $100 penalty if not filed within 60 days after the due date.
Series LLCs
Authorized, 805 ILCS 180/37-40 (series liability shield requires separate records, notice in the articles, and a certificate of designation for each series)
Community property state
No.
State entity tax
An LLC taxed as a partnership or S corporation pays Illinois personal property replacement tax of 1.5% of net income; corporations pay 7% income tax plus 2.5% replacement tax (Illinois Department of Revenue).
Illinois LLCs are governed by the Limited Liability Company Act, 805 ILCS 180. The act does not require an operating agreement. Section 15-5(a) provides that all members may enter into one to regulate the company's affairs and the relations among members, managers and the company, and the act governs wherever the agreement is silent. An operating agreement is the agreement of all members, including a sole member, whether oral, in a record, implied, or any combination (805 ILCS 180/1-5).
The agreement is not filed with the Secretary of State. An Illinois LLC is formed by filing Articles of Organization, and the operating agreement may be signed before, after or at the time the articles are filed and can be made effective as of formation (805 ILCS 180/15-5(h)). A written agreement becomes part of the company's required records: 805 ILCS 180/1-40 requires the LLC to keep copies of any written operating agreement in effect, with amendments, at its principal place of business or another location named in the agreement.
Without contrary terms, an Illinois LLC is member-managed (805 ILCS 180/15-1(a)). Each member has equal management rights and most decisions are made by a majority of the members. Section 15-1(d) lists the only matters that need every member's consent, including amending the operating agreement or articles, admitting a new member, redeeming an interest, and selling all or substantially all company property. Distributions made before dissolution are shared in equal shares (805 ILCS 180/25-1).
Illinois treats departure differently by management type. A member of a member-managed company may dissociate at any time by express will, but a member of a manager-managed company has no power to dissociate before dissolution unless the operating agreement specifies, in writing, when or how that can happen (805 ILCS 180/35-50(a)). A dissociated member then holds its distributional interest only as a transferee (805 ILCS 180/35-55), and the act sets no default buyout. A transferee who is not admitted receives distributions but has no management rights (805 ILCS 180/30-10).
Illinois authorizes series LLCs. An operating agreement may establish designated series of members, managers or interests, and a series gets its own liability shield only if separate records are kept, the articles give notice of the limitation, and a certificate of designation is filed for the series (805 ILCS 180/37-40). The Secretary of State charges $400 instead of $150 to file articles for a series LLC.
An LLC taxed as a partnership or S corporation pays Illinois personal property replacement tax of 1.5 percent of net income, according to the Illinois Department of Revenue. Every LLC files an annual report (Form LLC-50.1) before the first day of its anniversary month, the month it was organized. The fee is $75, plus $50 for each series with a certificate of designation in effect (805 ILCS 180/50-10), and a $100 penalty applies if the report is not filed within 60 days after the due date. Check the current statute before relying on a default rule.
Illinois statute sections and agency pages checked October 2026. Statutes change; confirm the current text before relying on a default rule.