Updated April 26, 2022
A Tennessee multi-member LLC operating agreement is a legal document used by entities with more than one (1) member to establish company standard operating procedures and policies, among other vital aspects of the business.
The state of Tennessee does not require the filing of this document. It is, however, highly recommended that all businesses consider implementing the document for the protection of the members’ assets. In case of legal action against the company, if an operating agreement is not in place, the members could be forced to relieve themselves of any personal assets and/or financial accounts to satisfy any court ruling in favor of a claimant or plaintiff. The placement of the document will also provide tax options not otherwise available to the business.
All members should carefully review the entire document. They may elect to work with a knowledgeable attorney for proper understanding, completion, and filing of the document.