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LLC Operating Agreement

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If you’re forming an LLC, single-member or multi-member, it’s recommended that you also put in place an operating agreement to specify financial and working relations between business owners (“members”) and members and managers.

This agreement determines how decisions can be made. It lays out ownership stakes, voting permissions and all the structural parts of the LLC. 

Some states require you to have an Operating Agreement, for those that don’t, the State law will govern how your LLC will be handled and you’ll have no say so it’s best to have an Operating Agreement.