An LLC Operating Agreement describes the operating rules of a Limited Liability Company (LLC). It outlines the daily operations as well as what happens if a conflict arises or a member needs to leave the business (by choice or for other reasons).

Does my LLC need an Operating Agreement?

Certain states, including Delaware, California, New York, Maine or Missouri, require you to have an LLC Operating Agreement. The guidelines vary by state, but even if you are not legally required to have one, it’s always a good idea to make a written agreement outlining business operations.

Operating Agreement Basics

An Operating Agreement can be lengthy and full of important details. To make an LLC Operating Agreement, you’ll need to have the following details available:

Company basics

• Company name and address
• Formation date
• Registered agent details

Member information

• Member names and contact details
• Contributions (capital, assets, services, or real property)
• Member Rights and responsibilities
• Manager/officer details, if applicable

Accounting procedures

• When the fiscal year will end
• How records will be kept
• Details about profit distribution

Other processes

• Voting procedures
• What happens if a member quits, is found incompetent, or dies
• How and when the LLC may be dissolved

*PARAMOUNT PARALEGAL SERVICE AND/OR ITS EMPLOYEES ARE NOT ATTORNEYS AND/OR LAW FIRM. IF YOU NEED LEGAL ADVICE, PLEASE SEEK THE APPROPRIATE COUNSEL*