Updated April 26, 2022
A New Mexico multi-member LLC operating agreement is a legal document to be used by entities with more than one (1) contributing member. By implementing this document, the members can establish various procedures, policies, duties, and responsibilities among other important aspects of the business.
The state of New Mexico does not require that businesses have an operating agreement in place. However, for any company, no matter the size, to decide against implementing the document would mean risking the personal, private assets of the members. Without the document in place, should the entity find that they are facing legal action, the laws shall default to the state, making all owners and members liable to pay any claims. Completion of the document creates a separation between the member/owner and the business. It also provides tax benefits not available unless the document is filed.
The members/owners should review the document to be certain that all possess complete legal understanding. Should clarification be necessary, the services of an attorney may be in order.