an llc operating agreement is a legal document that is similar to corporate bylaws. the best policy is to create your llc operating agreement when you start your business. even if your state does not require an operating agreement, it is still a good idea to have one. an llc operating agreement is a key legal document. having an llc operating agreement adds legitimacy to a sole-owner llc’s limited liability status and prevents the business from being seen as a sole proprietorship. another reason for creating an llc operating agreement is to avoid your state’s default llc rules. you can contract out of those default rules through your operating agreement.

members – if a new member is added to the company, which means the llc operating agreement would need to be amended, all existing members must approve with the written consent of that new member. protection – members of the llc are not personally liable or responsible for business debts and liabilities. ideally, you want to select a name that is catchy and original but more importantly, that references the industry of your business. a registered agent is a person either affiliated with the llc, such as a member, or a third-party who acts on behalf of the llc to collect all legal notices from the state or other important notices such as a lawsuit. with regards to single-member llcs, some states allow the single member to also act as the registered agent and other states require that a third party be the registered agent.