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an LLC operating agreement is a legally binding business document that entails the ownership of its members how the company is managed and the structure of the LLC or limited liability company it can provide details such as one meetings are held naming a registered agent selecting managers and adding and dropping members an LLC offers flexibility and combine the liability protection of a corporation with the tax treatment of a partnership you can file a simple certificate with the relevant state of formation an LLC will be governed by the state LLC laws what is the purpose of an LLC operating agreement it has many roles it defines the companys management structure it describes how the companys profits and assets are allocated and distributed it defines and sets out the agreements between the companys members members of the LLC are not personally liable or responsible for business debts and liabilities it is usually best to enter into the LLC operating agreement when the LLC is alre
