What is an LLC Operating Agreement?
An LLC Operating Agreement is the internal rulebook of a limited liability company. It records who owns what, how profits and losses are shared, how decisions are made, and what happens if a member leaves or the company is wound up. While the Articles create the company, the Operating Agreement is what actually keeps the members aligned and prevents disputes.
Why every LLC should have one
Without a written agreement, disagreements over money, control and exit are decided by default rules rather than what the founders actually intended. A clear Operating Agreement protects each member and makes the business far more credible to banks and investors.
Key clauses to include
- Members and ownership percentages.
- Capital contributions — what each member puts in.
- Profit and loss allocation and distribution rules.
- Management and voting — who runs the business and how decisions are made.
- Transfer of interest and exit / buy-out provisions.
- Dissolution — how the company can be wound up.
Create your Operating Agreement
Answer a few questions and download a tailored agreement as Word and PDF. If you are still setting up, see our Articles of Organization and Founders' Agreement.
FAQ
Do I need one if I'm the only owner?
Yes — a single-member agreement still helps prove your company is separate from you personally and sets out succession if something happens to you.