Updated April 26, 2022
A Michigan multi-member LLC operating agreement is a legal document used by companies with more than one managing member. The document is designed to assist members in the establishment of company policies and standard operating procedures. The document also serves to prove that the members are, in fact, owners of the company.
The state of Michigan does not require businesses that operate within the state to enact this document. However, should the members decline to complete and file an operating agreement, they would forgo the protections it would provide over the members’ financial and personal assets. They would also bypass the tax benefits that would only be available to companies who file the document.
Members should consider a careful review of the entire document prior to signing. If all members are confident in their understanding of the language within the document, they should proceed. If not, however, the members may choose to collectively consult with an attorney to provide clarity and acquire legal assistance.