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what is an operating agreement and why do you need it an operating agreement is just basically the governing document for an llc same thing as bylaws or shareholder agreement for a corporation or a partnership agreement for a partnership so youll hear operating agreement youll hear those words kind of used interchangeably but operating agreement is specific for an llc what does it talk about why do you need it well it talks about things like who owns an llc so for me and my business partner if its 50 and 50 itll say wesley henderson owns 50 another person ends 50 it also talks about things like decision making you know what happens if someone wants to leave that sort of thing so these documents are private so theres a couple things i want to highlight for you first is that if youre a single member just one owner of an llc youre going to say well why do i need an operating agreement well a lot of that question is right to be thinking that i would not spend a lot of time or money