Do I need an operating agreement for my LLC?

While not all states legally require an operating agreement, you absolutely should have one.

An operating agreement defines how your LLC is managed, how profits and losses are distributed, what happens if a member leaves, and how disputes are resolved. Without one, your LLC defaults to your state's LLC statute, which may not align with your intentions. Banks often require an operating agreement to open a business account. Investors and partners will expect one during due diligence. Single-member LLCs benefit from operating agreements because they strengthen the liability shield by demonstrating that the LLC is a separate entity from its owner. Key sections include: member contributions, profit distribution, management structure, voting rights, transfer restrictions, and dissolution procedures.