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What is an LLC operating agreement? An LLC operating agreement is a foundational legal document that outlines the ownership and member duties of your limited liability company. Not every state requires an operating agreement but they are highly recommended. If you are a sole owner of an LLC creating an operating agreement brings credibility to your business and helps ensure courts uphold your limited liability status in the event of a lawsuit. If you have a multi-member LLC the operating agreement will help prevent misunderstandings by setting clear expectations about partner roles and responsibilities. Make sense? Lets look at the six key sections that should be present in a typical operating agreement Article 1: Organization The first article deals with the creation of the company when it was created, who members are, and the structure of the ownership. Article 2: Management and Voting The second article establishes if the company is managed by all of the members or by appointed man