An operating agreement serves a similar purpose for an LLCs as corporate bylaws serve for corporations: namely, it sets forth the internal governance structure, policies and procedures for the LLC. Depending on the size and complexity of the LLC, an operating agreement can be a relatively straightforward affair or quite lengthy and intricate.

Most operating agreements will include at least the following information:

• Name and address of the LLC
• Name and address of the registered agent (who receives service on behalf of the LLC)
• Names of members, their contributions and responsibilities to the LLC, ownership interests, and transfer of ownership
• Governance: board of managers and/or officers, their duties, compensation, authority, and restrictions
• Accounting: how financial records will be kept
• Procedures for dissolving the LLC

If an LLC doesn’t have an operating agreement, courts may impose a default set of rules on the company; so it’s always better to write your own rules! If you need an operating agreement for your LLC, please contact us for experienced legal assistance.