Create an operating agreement with confidence and ease!
An operating agreement acts as the defining document for your LLC. It determines the relationship between the owners and the business, expresses the limits on the personal liability of the owners, and establishes the rights and responsibilities of the owners to each other. It is highly recommended for all LLCs.
An operating agreement may be needed to:
- Open a bank account
- Protect the owners
- Add an additional layer of liability protection for the owners
- Establish the financial boundaries of the owners
- Define how new members can be added
- Define the terms of an owner leaving or selling their interest
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*NBF provides filing assistance only at the specific direction of the user. NBF is not a law firm and does not offer legal advice or consultation.
What is an Operating Agreement?
An LLC Operating Agreement is a legal document that outlines the ownership and member duties of a Limited Liability Company. This agreement allows you to set out the financial and working relations among business owners and between ownes and managers.
In addition, it is a document that defines the role of the company, and separates the company from the individual(s) who own it. An operating agreement is not necessary for a single member LLC, but it is recommended as it ads an addition layer of protection against personal liability