Independent Contractor Agreement

An Independent Contract is a formal agreement between a business or individual (the client) and a self-employed person or entity (the contractor) who provides specific services or completes a project. The contractor operates independently, without being considered an employee, meaning they handle their own taxes, insurance, and work processes.

Purpose: The purpose is to clearly define the scope of work, payment terms, deadlines, and responsibilities while ensuring both parties have legal protection. It establishes a professional relationship, outlines expectations, and avoids misunderstandings.

Single-Member LLC Operating Agreement

Purpose: Designed for LLCs with only one owner (member).

Features:

Specifies the sole member's control over the business.

Outlines the separation of personal and business assets.

Includes provisions for succession planning or transfer of ownership.

Multi-Member LLC Operating Agreement

Purpose: Used for LLCs with two or more members.

Features:

Defines ownership percentages and capital contributions.

Details profit and loss distribution among members.

Includes voting rights and decision-making processes.

Addresses procedures for member addition or withdrawal.

Member-Managed LLC Operating Agreement

Purpose: For LLCs where all members participate in day-to-day management.

Features:

Specifies roles and responsibilities of each member.

Outlines voting rights and decision-making procedures.

Includes provisions for conflict resolution among members.

Manager-Managed LLC Operating Agreement

Purpose: For LLCs where designated managers (who may or may not be members) handle daily operations.

Features:

Defines the manager’s powers and responsibilities.

Details how managers are appointed, compensated, and removed.

Limits members' roles to oversight and major decision approvals.

Single-Purpose LLC Operating Agreement

Purpose: For LLCs created for a specific purpose or project.

Features:

Focuses on the operations and management related to the single purpose.

Clearly outlines the duration and dissolution process once the purpose is achieved.

Series LLC Operating Agreement

Purpose: For LLCs that have separate divisions (or "series") operating independently.

Features:

Establishes the structure of the umbrella LLC and its individual series.

Details asset protection and liability separation between series.

Outlines operational rules for each series.

Professional LLC (PLLC) Operating Agreement

Purpose: For LLCs formed by licensed professionals (e.g., doctors, lawyers, accountants).

Features:

Ensures compliance with state laws governing professional entities.

May include provisions specific to the practice, such as liability and licensing requirements.

Equal Ownership LLC Operating Agreement

Purpose: For LLCs where all members hold equal ownership and decision-making power.

Features:

Outlines shared management responsibilities.

Specifies equal profit and loss distribution.

Unequal Ownership LLC Operating Agreement

Purpose: For LLCs where ownership, profits, or decision-making power is distributed unequally.

Features:

Details each member’s ownership percentage and profit share.

Establishes voting power proportional to ownership.

Family-Owned LLC Operating Agreement

Purpose: For LLCs owned and operated by family members.

Features:

Includes succession planning for generational transfer.

Addresses family conflict resolution mechanisms.

Outlines ownership and management roles for family members.

Investment LLC Operating Agreement

Purpose: For LLCs formed as investment entities (e.g., real estate or joint ventures).

Features:

Includes rules for pooling capital and sharing returns.

Outlines procedures for adding or removing investors.

Details the distribution of profits and responsibilities.

Anonymous LLC Operating Agreement

Purpose: For LLCs formed to provide anonymity to their members (available in some states like Wyoming, Nevada, and Delaware).

Features:

Omits personal details of members in public records.

Clearly defines internal roles and responsibilities.

Nonprofit LLC Operating Agreement

Purpose: For LLCs operating as nonprofit organizations (allowed in some states).

Features:

Outlines compliance with nonprofit operational standards.

Details profit reinvestment and restrictions on distributions.

Types of Independent Contractor Agreements