Updated April 26, 2022
A South Dakota multi-member LLC operating agreement is a legal document designed to help managing members of a company establish and agree upon standard operating procedures, policies, member lists, and many other important structural aspects of the business.
Although the state of South Dakota does not require that any company have this document on file to do business within the state, the document is vital should the members wish to protect their private assets from potential legal claims against the company. By completing and filing this document with the state, the personal assets of all members shall remain protected, although the company will remain liable to pay any claims in the event the courts find in favor of the claimants or creditors. The document will also provide beneficial taxation options that would not be available to the named company unless the document is implemented.
Members must carefully review the document before filing. If the members do not fully understand the contents of the form, they may elect to employ legal counsel for advice and/or assistance.