Document background
The Member Managed LLC Operating Agreement serves as the primary governing document for Limited Liability Companies in the United States where members wish to retain direct management control. This document becomes essential when two or more individuals or entities form an LLC and want to clearly define their roles, rights, and responsibilities in managing the company. It includes critical provisions regarding capital contributions, profit sharing, voting rights, transfer restrictions, and dissolution procedures. The agreement must comply with state-specific LLC laws while providing flexibility for business operations. It's particularly important for small to medium-sized businesses where owners want to maintain active involvement in company management and operations. Unlike manager-managed structures, this agreement emphasizes collaborative decision-making among all members while still providing liability protection under U.S. law.
