Updated April 26, 2022
A Pennsylvania multi-member LLC operating agreement is a legal document used by companies with more than one (1) member. The document guides the members through the establishment of company procedures and policies, member listings, and member duties, along with other important aspects of the entity.
The document is not required for a business to operate in the state of Pennsylvania. However, in the absence of such an agreement, the members’ personal assets could become vulnerable if the entity is presented with any type of litigation or business failure resulting in legal liability to claimants and/or creditors. Completing the document would protect the members’ assets through the creation of legal separation between the members and the entity.
The document should be carefully examined by all members to ensure that its language is fully understood. If the members aren’t certain they fully understand the information contained within the document, they may consider the assistance of legal counsel.