LLC Operating Agreement

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An LLC operating agreement sets the rules and parameters for which a limited liability company shall run their day-to-day business affairs.


There are two (2) Main Reasons for an LLC Operating Agreement

  1. Entity Status – One of the main reasons an individual will setup an entity is to isolate financial and legal exposure to the business. If a party attempts to question an LLC’s entity status the operating agreement helps to support the Principal’s claim.
  2. Partner(s) – If there are going to be partners in the company, it is best to have them tied to an agreement that states what exactly their everyday duties. Therefore, if the partner does not perform to their ownership percentage, the form may option to have language revoking their interest in the company.

The LLC operating agreement does not need to be filed with any government agency. It is signed and recommended to be notarized and kept in a safe place for easy accessibility.

  • The following States require an operating agreement by law with the formation of an LLC; California, Delaware, Maine, Missouri, and New York. After the document has been signed it is important for all parties to retain a copy for their records.

Free State Specific LLC Operating Agreements

Alabama Hawaii Massachusetts New Mexico South Dakota
Alaska Idaho Michigan New York Tennessee
Arizona Illinois Minnesota North Carolina Texas
Arkansas Indiana Mississippi North Dakota Utah
California Iowa Missouri Ohio Vermont
Colorado Kansas Montana Oklahoma Virginia
Connecticut Kentucky Nebraska Oregon Washington
Delaware Louisiana Nevada Pennsylvania West Virginia
Florida Maine New Hampshire Rhode Island Wisconsin
Georgia Maryland New Jersey South Carolina Wyoming