Updated April 26, 2022
A New York multi-member operating agreement establishes ownership of one company by multiple members. The document, by unanimous agreement of all of the members, outlines the company’s standard operating procedures and policies.
The agreement protects owners/members from personal liability in the event of a lawsuit, creditor collections, or any other company obligations to legal liabilities by creating a legal separation between the company and its members.
The state of New York requires that businesses file an operating agreement. Once completed and witnessed, the document must be stored in a safe and reasonably accessible location.