Updated April 15, 2022
A Colorado multi-member LLC operating agreement is used to establish an entity with the approval of a member-managed company or business that has more than one member. The document shall provide guidance to the members regarding operations, procedural steps, member contribution, percentage of interest, and other important aspects of the business that require member agreement. The document will offer protections, keeping the members’ personal assets separated and therefore secure in the event of litigation and/or bankruptcy.
The document is a requirement by the state of Colorado if a business would like to operate within the confines of the state. The form will require completion and filing with associated processing fees.
All members must review the document. If any member finds that they aren’t clear with regard to the presentation of the legalese of the document, they may wish to consider a consultation with an attorney to be certain that they fully understand the depth of what the membership shall require pertaining to obligations and responsibilities of the managing members.