Six questions
1 answered
Usually the operating company with the staff.
The entity being billed for them.
What services are actually provided?
Pick only what genuinely happens. Anything listed here must be real.
How is the fee calculated?
Cost-plus methodology: Operating Entity reimburses Management Entity for its allocable share of shared costs (determined monthly), plus a [PERCENT]% administrative markup on those costs.
Common ownership is what makes the arrangement defensible.
It governs the agreement.
Effective date · still blank
Backdating a management agreement is the single most common thing that gets one disregarded. Pick a date going forward.
Optional. Existing arrangements, unusual terms, a lender covenant.
Preview updates as you answer
Draft preview
Draft — not for execution
Draft — not for execution
Management Services Agreement
This Management Services Agreement is entered into as of , by and between (“Manager”) and (“Company”).
Answer the questions on the left and draft the agreement to see the full document here. Blanks in the output are shown inline, so a gap in the draft is visible in the draft.
Before this is worth anything
3 blocking export
Fill in the effective date
The document cannot be exported with this blank. Going forward, not backdated — backdating is the single most common thing that gets one of these disregarded.
Name both entities exactly as they appear on the filings
A mismatch between the agreement and the Secretary of State record is the first thing a reviewer notices.
List only services that genuinely happen
Anything listed here has to be real and documented. A service nobody performs turns the whole agreement into a problem rather than a protection.
Have an attorney in your state review it
This is a drafting starting point, not legal advice. An hour of review is cheap next to an agreement that gets disregarded.
Confirm the fee with your CPA before the first payment
Cost-plus needs a cost schedule behind it. Your CPA should see the basis, not just the number.
Both members sign, and the minutes reflect it
An unsigned agreement in a folder is not an agreement. The minutes are what show it was a decision rather than a document.
Actually pay it, monthly, on the schedule it names
An agreement nobody pays under is worse than no agreement — it documents an intent your books contradict.