An operating agreement is a key document used by limited liability companies (LLCs) to outline the business' financial and functional decisions including rules, regulations and provisions. The purpose of the document is to govern the internal operations of the business in a way that suits the specific needs of the business owners, called "members".
An operating agreement defines the internal operations of a limited liability company (LLC), outlining its financial and functional decisions, rules, regulations, and provisions. The document is designed to govern the business in a way that suits the needs of the LLC's members.