Updated March 15, 2022
A Rhode Island multi-member LLC operating agreement is a legal document used by entities with more than one (1) managing member. The document sets forth the company’s policies and operational procedures to be unanimously agreed upon by all members. The document also provides an outline of the duties and responsibilities of the respective managing members.
An operating agreement is not a prerequisite for conducting business within the state of Rhode Island. However, members should strongly consider completing the document to provide much-needed protections over their private assets. Should the entity is at any time be presented with legal claims, members could find themselves personally liable if the document has not been filed with the state. With the document in place, the business will be responsible to satisfy the claims while the members’ assets will remain protected. The document also offers tax options that would otherwise be unavailable.
Members should collectively review the entire document. Should there be any confusion as to the language contained within the document, the members may wish to consider a consultation with a knowledgeable attorney to assist with clarification of the information contained within the form and/or overall assistance with the completion and filing of the document.