Operating Agreement

An Operating Agreement is a legal document that outlines how a limited liability company (LLC) is managed, including member roles, ownership percentages, decision-making processes, and procedures for profit sharing and dispute resolution. It serves as a roadmap for the company's operations and helps prevent misunderstandings among members by clearly defining their rights and responsibilities. While not always legally required, having an Operating Agreement provides clarity, protection, and structure, ensuring the LLC functions smoothly and aligns with the owners' intentions.