What is Operating Agreement? Definition, requirements, and how it applies to your business formation. Learn everything about llc operating agreement for LLCs and corporations.
# LLC Operating Agreement
An Operating Agreement is an internal governance document that defines how an LLC will be managed, how profits and losses are distributed, how decisions are made, and what happens when members join, leave, or the LLC dissolves. While not filed with the state, it is the LLC's most important governing document.
Only a few states legally require an operating agreement (New York, California, Maine, Missouri, Delaware), but every LLC should have one. Without it, the state's default LLC act governs all internal matters — which rarely matches what members actually intend.
Lovie generates a customized Operating Agreement during formation, tailored to your ownership structure, management preferences, and state requirements.