What is an LLC Operating Agreement?

An LLC Operating Agreement is the “rulebook” for a Limited Liability Company. While a Business License or Articles of Organization register your company with the state, the Operating Agreement is a private internal document that outlines how the business is actually run, who owns what, and how decisions are made.Think of it as a prenuptial agreement for business partners—it’s much easier to decide what happens during a “divorce” or a crisis while everyone is still on good terms.