^[redacted]‌ - We're pretty close to releasing a major feature for all Deal Docs in collaboration with some of the top Searchfund law firms. I will let ^[redacted]‌ chime in here on the status and scope.

We will create templates but we are starting with LOI and other types of deal docs. If any lawyers would like to contribute template documents, please email the team at [redacted]

I have seen a lot of operating agreements over the year and there are good ones and bad ones from both economics and tax provisions. I highly recommend you work with an experienced transaction attorney to make sure you have covered all of the important pieces and an experienced transaction / partnership CPA to review the tax sections who will work collaboratively with the attorney.

Great question. I, too, would be interested in such a template. Or, better yet, a few templates. I would especially be interested in what characteristics or provisions make "good ones and bad ones from both economics and tax" perspectives, as Robert says. Sorry I can't actually help. Thanks for the work you're doing, ^[redacted]‌ and ^[redacted]‌. I'm looking forward to the sample docs you come up with.

A good operating agreement should be no more or less complex than is necessary. A business with two owners at[redacted]with equal contributions is going to have a very different OA than a business with an owner who also serves as the CEO with a 25% stake and board of passive investors who may not be concerned with anything other than dividends.

My primary advice is to make sure that your OA addresses the 3 most common areas where issue arise within closely-held businesses: 1) Money (who gets paid what and how is that decided? What happens if we need more capital?), 2) Power (who makes the decisions generally? How are votes allocated? When do we need majority/super-majority/unanimous consent on a business decision?) and 3) Succession Plans (what happens if an owner dies/declares bankruptcy/doesn't want to be an owner any more? How will the Company retain ownership with adequate flexibility to maintain daily operations of the Company? What if an owner/employee gets fired?).

In my limited experience, smaller companies tend to over-think the Operating Agreement, and larger companies tend to under-think it. I think it's a good idea to make sure that your primary concerns are addressed in the document in a manner that is clear and understood by all the stakeholders.

And, as ^[redacted]‌ noted, make sure to loop your tax advisor in on the financial aspects to say on the right side of our good friends at the IRS.

Here is a very simple operating agreement folks can look at for inspiration. Not a substitute for getting a deal lawyered.. LMK if you have any questions. https://drive.google.com/drive/folders/1R_SHAmIWGJmbyEG2E6nQ_xH6fYQLjJOK?usp=sharing