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In this episode, Jim Hart, founding attorney at Hawthorn Law, discusses the importance of having an operating agreement for your LLC. He emphasizes that an operating agreement is crucial for both single-member and multi-member LLCs, serving as a contract between the business owner and the business itself. Jim highlights common mistakes entrepreneurs make regarding their LLC formation and encourages viewers to check out a linked video for further insights. The operating agreement is essential for legally protecting and growing your business, ensuring clarity in the roles and responsibilities within your LLC.