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This text provides information on the importance of having an Operating Agreement for an LLC. An Operating Agreement outlines how the LLC will be managed financially and operationally by its members. Unlike LLC Formation Documents, the Operating Agreement does not need to be submitted to the State. It is considered an "internal document" that should be kept with your business records. The purpose of an Operating Agreement is to establish the members of the LLC and their ownership percentages, as well as define how the LLC will be managed.