The agreement between members of a Limited Liability Company that governs the affairs of the business.
Much like a partnership agreement, the operating agreement for a Limited Liability Company controls how the owners relate to one another. The operating agreement can outline how decisions are made, who is in charge of the business, how investments are repaid, how more money is put into the company, how different members are paid, and how the company is dissolved. Typically, an operating agreement may be amended without adjusting the Articles of Organization for the company.
Operating agreements can state structure the relationship between the parties in any way that it is not restricted by state law. That means the LLC can be whatever it needs to be for the partners. The operating agreement can be easily amended making it a living document that can grow with your business.
It is important to revisit the operating agreement regularly to make sure it still reflects the agreement between the members.