Limited Liability Company
Operating Agreement

This is the basic framework for operating the Company and it may appear hyper-legal and overwhelming, but its really quite simple and fair. We are not usually exposed to this type of fairness in policy making, finances, management and membership, so it is important to study this document to see what the potential is. In order to create a new relationship with each other beyond the traditional servitude between landlords and laborers, we need a system that fosters membership/ownership in the project.

It also fosters a more responsible relationship to the land and surroundings. Sustainable Development is only sustainable if the people get their fair share of the harvest and make a good living and have a decent community structure. This legal format will help many to create such a world. It will help create communities that are not communistic, multinational corporations, strickly religious based, volunteer/donation based, or slave/oppressed labor based.

This is a sample form of a typical Real Estate LLC Operating Agreement. It doesn't do much more than create the legal framework for the actual Operating Plans of the Project. But it necessary to do this legal homework first. No matter what type of community you currently live in, this framework will allow you to compare and contrast with what you are familiar with and what you think should be the legal framework for a small community. This is some serious food for thought, and the LLC is the product of a century of attempts to create a fair legal corporation that can operate in the larger legal/gov't. context and the larger corporate context in such a fashion that people become participating Members and not just alienated shareholders or employees.

Operating Agreement
for
Sagewood Properties LLC
A (NAME OF STATE) Limited Liability Company

THIS OPERATING AGREEMENT is made and entered into as of (DATE) by and among (NAME OF LLC)ie. Sagewood Properties LLC, a (NAME OF STATE) LLC (the "Company") and the persons executing this Operating Agreement as Members of the Company and all of those who shall hereafter be admitted as Members (individually, a "Member" and collectively, the "Members") whose names and signatures shall appear on "EXHIBIT A, MEMBER LISTING; CAPITAL CONTRIBUTIONS," below, hereby agree as follows:

WITNESSETH:

1. Whereas, the Members desire to enter into this agreement ("Operating Agreement" or "Agreement") for the purposes of governing the Company, to and for the sole purpose of investing in, purchasing, selling, granting, or taking an option on lands solely for investment purposes and not as a trade. The Company shall not conduct any other business unless related to the business, unless approved by unanimous consent of all Members.

2. Whereas, the Members intend to operate the Business, appoint a person or persons to assume responsibility for certain management matters (the "Manager") and provide for the restriction on the transfers of ownership interests in the Company ("Interests").

NOW, THEREFORE, in consideration of the mutual premises below, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, it is agreed as follows:

  1. ORGANIZATION
  2. BOOKS AND RECORDS
  3. CAPITAL CONTRIBUTIONS
  4. ALLOCATIONS AND DISTRIBUTIONS
  5. DISPOSITION OF MEMBERSHIP INTERESTS
  6. MEETINGS OF MEMBERS
  7. MANAGEMENT
  8. EXCULPATATION OF LIABILITY: INDEMNIFICATION
  9. OTHER ACTIVITIES, DISSOLUTION & WINDING UP
  10. MISCELLANEOUS PROVISIONS
  11. PROPERTY CONTRIBUTIONS
Certificate Of Formation
Articles Of Organization
Utopia Intro Page
Sagewood Springs
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