Is an LLC Agreement the Same as an Operating Agreement?

Overview of Operating Agreements and Articles of Organization

  • Operating Agreements:

    • Guide internal operations of a business
    • Provide structure and clarity for multi-member LLCs
    • Govern economic and business arrangements of LLC members
    • Not legally required but recommended to prevent disputes and offer clarity
  • Articles of Organization:

    • Establish LLC’s legal existence
    • Show basic details like name and address of LLC
    • Form the LLC under state law
    • Are essential for legal existence

Differences Between Operating Agreements and Articles of Organization

  • Definition and Purpose:

    • Articles of Organization: Establish legal existence
    • Operating Agreements: Govern internal operations
  • Content:

    • Articles of Organization: Basic details of LLC
    • Operating Agreements: Management, voting rights, profit distribution
  • Legal Requirement:

    • Articles of Organization: Required for legal existence
    • Operating Agreements: Not legally required but highly recommended

The Role of LLC Resolution vs. Operating Agreement

  • Operating Agreements:

    • Guide internal operations
    • Provide structure and clarity for multi-member LLCs
    • Govern economic and business arrangements
  • Is an LLC Resolution the same as an Operating Agreement?


FAQ: Operating Agreement

  • What is another name for the operating agreement?
  • Is a LLC resolution the same as an operating agreement?

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