Updated April 15, 2022
A Delaware multi-member LLC operating agreement is a legal document used by any entity managed by more than one member. The document will outline all of the various aspects of the company so that all members agree concerning standard operating procedures, eliminating the possibility of disagreement later on. The document will also protect all members from using personal assets to settle claims against the company should litigation arise. The members will also experience tax benefits.
Operating agreements are not required in the state of Delaware, but it’s highly recommended that it be completed and retained by all members. Members are advised to thoroughly read the entire document. Should the language be unclear, the collective membership may consider a consultation with an attorney for clarification.