Updated April 26, 2022
An Oregon multi-member LLC operating agreement is a legal document used by companies with more than one (1) managing member to establish standard procedures, company policies, and responsibilities of the members.
The document is not a requirement within the state of Oregon. However, without completing and filing the form, the individual members could face the possibility of legal liabilities on behalf of the business should they be presented with legal claims that are found to be legitimate in a court of law. Members could, under those circumstances, be forced to liquidate their personal assets and financial accounts to pay restitution and/or fines to the courts. Therefore, it is crucial to use this document to properly state that the members’ private assets and financials are separate from those of the company. The document also provides tax options that would benefit the members and the company.
Members should consider, prior to completion, a close review of the document. If the members are not confident that they understand the document entirely, they may wish to consider a collective meeting with an attorney to discuss clarifications and, if needed, gain assistance in preparing the document. This document will require notarization.