Operating Agreement
/ˈɑːpəˌreɪtɪŋ əˈɡriːmənt/
Definitions
- (n.) A legal document outlining the management structure and operating procedures of a limited liability company (LLC).
The members signed the operating agreement to establish the LLC's rules.
- (n.) An agreement among business partners detailing their roles, rights, duties, and financial arrangements.
The partners referred to the operating agreement to resolve the dispute.
Forms
- operating agreements
Related terms
See also
Commentary
Essential for LLCs, the operating agreement customizes default statutory rules to suit members' unique arrangements; careful drafting prevents internal conflicts and legal ambiguity.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.