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[Music] in the world of business structures both LLC operating agreements and partnership agreements stand out as vital documents but whats the difference between the two lets dive in but before we get started please give this video a like press the Subscribe button and ring the notification Bell so you can stay in the loop about crucial information that can benefit your business first off its important to note the fundamental difference between an LLC and a partnership an LLC or limited liability company is a distinct legal entity that separates the business from its owners on the other hand a partnership is simply a business relationship between two or more individuals now lets break down their respective agreements the LLC operating agreement this agreement outlines the governance and the financial and functional decisions of an LLC it may include details like how the profits and losses are distributed management structure and voting rights how new members are admitted processes