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An LLC Operating Agreement helps prevent conflicts among owners, clarifies responsibilities, and minimizes legal issues when starting a business. The video outlines the definition of an operating agreement, its necessity, key elements, its status as a living document, and how to obtain a customized agreement for free. The agreement details ownership, governance rules, and members' responsibilities. While some states mandate an operating agreement, it is beneficial for all LLCs to establish clear guidelines. The information provided is for educational purposes and should not replace legal or tax advice; consultation with a lawyer is recommended before taking any action.