Compliance
Will my LLC need an operating agreement?
Yes — every LLC should have one, even single-member LLCs. The state usually doesn't require it, but banks, partners, and courts do.
3 minUpdated Apr 27, 2026
An operating agreement is your LLC's internal rulebook. Most states don't require you to file it — but you should still write one. Here's why.
Why every LLC needs one
- Banks: most require it to open a business account
- Multi-member LLCs: defines ownership %, voting rights, and profit distribution — without it, state default rules apply, which usually mean equal shares regardless of contribution
- Single-member LLCs: reinforces the corporate veil — courts use the operating agreement as evidence the LLC is a separate entity from you
- Partners + investors: anyone joining wants to see one before they're convinced you're serious
- Disputes: when a member wants out or there's a disagreement, the operating agreement is the contract that resolves it
What it should cover
- Member names + ownership percentages
- Capital contributions (cash or property each member put in)
- How profits + losses are distributed (often, but not necessarily, by ownership %)
- Voting rights and decision-making (majority? unanimous? per topic?)
- Management structure (member-managed vs manager-managed)
- How new members can be added
- What happens when a member wants out (buy-out terms)
- Dissolution procedures
Every FormifyAI plan generates a starter operating agreement based on your state and member structure. You can edit it, sign it, and store it in your document vault — no separate filing needed.
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