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The operating agreement establishes the rules for the operations of a Limited Liability Company. It is similar to a corporation’s bylaws or a partnership agreement. The operating agreement can control such things as the distribution of profits, and how management powers are divided up amongst members or managers. An operating agreement is essential because things always go smoother when the rules for potential issues are put in writing before the LLC gets started. Unless specifically stated in the original agreement itself, the operating agreement can only be amended with the written consent of all members. It is unwise to operate without an operating agreement, even though most states do not require a written document.
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To learn more about establishing an operating agreement for your LLC, contact a Nevada Corporate Headquarters representative at 1-800-508-1729.