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In this video, attorney Jim Hart discusses the importance of an operating agreement for your LLC. He explains that this agreement serves as a contract between the business owner and themselves, particularly for single-member LLCs. Hart emphasizes that having an operating agreement is crucial for protecting your business legally and avoiding common mistakes entrepreneurs make during LLC formation. He also provides a link to another video addressing these mistakes for further guidance. The operating agreement outlines the structure and operational guidelines of the business, which are essential for its growth and legal compliance.