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What is an Operating Agreement?
What is an Operating Agreement?
Updated over 3 weeks ago

A document detailing the internal rules and governance of the business, listing each owner and their corresponding equity ownership. We have a template that you can use if you don't already have an operating agreement, but you can also provide your own version.

This document should include:

  • Management structure (e.g., member-managed or manager-managed for LLCs)

  • Ownership percentages and voting rights

  • Rules for decision-making and profit distribution

  • Provide all amendments to the agreement/bylaws for any time ownership has changed since inception. Must be fully executed by all members of the business.

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