Updated April 26, 2022
A Maryland multi-member LLC operating agreement is a legal document utilized by the managing members of a company to establish operating policies and procedures. The state of Maryland, like most states, does not require any business to provide this document. However, all businesses should take this document into serious consideration. Without such an agreement in place, in the event the company should be faced with any type of litigation, the members would be at risk of liability, placing their personal and financial assets in jeopardy. Without the document in place, litigation will most likely default to state laws. The document creates a separation between the members’ assets and those of the business.
This document should be very carefully reviewed and agreed upon by all members. If for any reason the terms are unclear, members may choose to meet with an attorney for proper guidance.