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An LLC operating agreement is a legally binding document outlining member ownership, management, and structure of a limited liability company (LLC). It includes details like meeting schedules, registered agent designation, manager selection, and member changes. The agreement offers flexibility, combining liability protection akin to a corporation with tax treatment similar to a partnership. To establish an LLC, a simple certificate must be filed with the state, which governs LLC laws. The operating agreement defines the management structure, profit distribution, and agreements among members, ensuring they are not personally liable for business debts. It's advisable to create this agreement when the LLC is formed.