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Commonly Asked Questions about LLC Operating Agreement Template

An operating agreement, also known in some states as an LLC agreement, is a contract that describes how a business plans to operate. Think of it as a legal business plan that reads like a prenup. It includes terms on managing the business, sharing profits and losses, and how to close the business.
An operating agreement (bylaws) is an internal document that defines how the business owners professionally relate to one another. The articles of incorporation (certificate of formation) is a public document that legally establishes a business as a corporation.
Operating Agreement vs. A business plan sets out company goals along a timeline and is more of a roadmap that gives an indication to the members and others (lenders, for example) of where the company is going and how it will theoretically get there.
How to Write an Operating Agreement Step by Step Step One: Determine Ownership Percentages. Step Two: Designate Rights, Responsibilities, and Compensation Details. Step Three: Define Terms of Joining or Leaving the LLC. Step Four: Create Dissolution Terms. Step Five: Insert a Severability Clause.
Georgia does not require LLCs to have Operating Agreements before they are formed. You can form and run your company without having to create the document. That said, the Operating Agreement is a very important tool in ensuring your company performs at its best.
No requirement exists under Texas law for a Texas LLC to create an operating agreement. However, it is recommended. Both sole owners and multi-members benefit from a Texas LLC operating agreement.
In short, a business plan is your overall roadmap, a strategic plan sets the direction for growth, and an operational plan makes sure everything runs smoothly day by day. They work together to keep your business on track and thriving.