An operating document is an internal business contract between the member(s) which outlines how the LLC will be governed. It highlights the rights, responsibilities and obligation of each member or manager towards the firm. This agreement is similar to by-laws of a corporation or partnership agreement.
The agreement lists out the terms and condition agreed by the member(s) of the LLC. It also mentions various constituencies to handle myriad of situations. Example what happens when any of the member does not fulfill his duties or what happens why any of the member decides to leave the firm [...]
The blogpost What Is Operating Agreement | Find State-Wise Requirement was first published on https://businessentity.org
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