An operating agreement is a limited liability company’s governing document. It is written by the LLC’s members, who outline both the management and ownership of the company within the agreement. It is best to think of an operating agreement as a blueprint for the larger structure of your company.
State law does not legally require you to write an operating agreement, and the document is not filed with any government agency. An operating agreement is purely internal, and it may be altered at any time by your LLC members (although an operating agreement usually lays out a procedure for making amendments). With that said, it is unwise to forego writing an operating agreement.
A well-conceived operating agreement will help your company avoid potential conflicts and pitfalls as your business develops. This is especially true if your LLC has multiple members. For example, imagine that you are running your Washington LLC successfully, and after five years one of your members dies. An operating agreement would lay out specifically how that member’s LLC assets would be divided. Without an operating agreement, however, there is no agreed-upon path forward.
This is precisely the kind of development that so often leads to conflicts…and the courtroom.
Our free online tool allows you to create your own single-member LLC operating agreement. You do not need to sign up with us to use our template. Feel free to download and print this template and use it for you LLC. If you need to put the development of your operating agreement on pause, no problem. We’ll save your progress and you can come back to it when you’re ready. If you do decide to hire us to form your LLC, we’ll keep a copy of your completed operating agreement in your client account so you can access it when you need it.
If you’re starting a multi-member or manager-managed LLC, we have custom operating agreements for you, too! Hire us to form your Washington LLC, and you’ll get a operating agreement specific the type of LLC you’re forming.