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Protect Your LLC with an Operating Agreement

Define member rights, profit distribution, and management structure. A custom operating agreement strengthens liability protection, prevents disputes, and clarifies how your LLC operates. Single-member or multi-member—we tailor it to your business.

Create Operating Agreement

Custom Drafted

Tailored to your LLC structure

Member Rights

Voting, profit sharing & responsibilities

Liability Protection

Strengthen your corporate veil

Overview

What Is an Operating Agreement?

An LLC operating agreement is a legal document that defines how your LLC is governed. It sets out member (owner) rights and responsibilities, profit and loss allocation, management structure (member-managed vs. manager-managed), voting procedures, buy-sell provisions, and what happens when a member leaves or the LLC dissolves. Most states do not require you to file an operating agreement with the state—it's an internal document. However, banks, investors, and courts often expect to see one. It reinforces your LLC's separate existence and can help protect the corporate veil. Single-member LLCs benefit from an operating agreement too; it documents that the business is distinct from the owner.

Why You Need an Operating Agreement

Liability Protection

Courts may "pierce the corporate veil" if an LLC lacks formalities. An operating agreement demonstrates that you treat the LLC as a separate entity, helping protect personal assets.

Prevent Member Disputes

Without a written agreement, state default rules apply—and they may not match your expectations. Document profit splits, decision-making, and exit procedures to avoid costly conflicts.

Bank & Lender Requirements

Many banks require an operating agreement before opening a business account. Lenders and investors may also request it to understand your ownership structure and governance.

What's Included

  • Member names, ownership percentages, and capital contributions
  • Management structure (member-managed or manager-managed)
  • Voting rights and decision-making procedures
  • Profit and loss allocation
  • Buy-sell provisions and transfer restrictions
  • Dissolution and winding-up procedures

Simple Process

How It Works

1

Answer a Few Questions

Tell us about your LLC: members, ownership split, management style, and any special terms. Single-member or multi-member—we adapt to your structure.

2

We Draft Your Agreement

We generate a custom operating agreement based on your answers and your state's requirements. You'll receive a professional, ready-to-sign document.

3

Sign & Store Safely

All members sign the agreement. Keep it with your LLC records—you don't file it with the state, but banks and lenders may ask to see it.

FAQ

Frequently Asked Questions

Is an operating agreement required by law?
Most states do not require LLCs to have an operating agreement, but California, Delaware, Maine, Missouri, and New York require either an operating agreement or similar documentation. Even where not required, having one is strongly recommended for liability protection, clarity, and meeting bank and lender expectations.
Do single-member LLCs need an operating agreement?
Yes. A single-member operating agreement helps demonstrate that the LLC is separate from the owner—critical for maintaining the corporate veil. It documents that the business has its own governing rules, even with one owner. Banks and courts may look for this formality.
What's the difference between member-managed and manager-managed?
In a member-managed LLC, all members participate in day-to-day decisions. In a manager-managed LLC, one or more designated managers run the business; other members are passive investors. Manager-managed structures are common when some members are investors who don't want operational involvement.
Do I file my operating agreement with the state?
No. The operating agreement is an internal document. You do not file it with the Secretary of State or any agency. Keep signed copies with your LLC records. You may need to provide it to your bank, accountant, or attorney.
Can I amend my operating agreement later?
Yes. Operating agreements typically include amendment procedures—often requiring a vote or unanimous consent of members. When you add members, change ownership, or modify management, you should amend the agreement and have all members sign the amendment.

Protect Your LLC Today

Get a custom operating agreement tailored to your business. Strengthen your structure and avoid disputes.

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