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Bylaws and resolutions are the initial decisions of your corporation's board of directors and basic "operating rules" of your corporation. An operating agreement is a key document used by LLCs because it outlines the business' financial and functional decisions including rules, regulations and provisions.
An operating agreement (bylaws) is an internal document that defines how the business owners professionally relate to one another. The articles of incorporation (certificate of formation) is a public document that legally establishes a business as a corporation.
Having an operating agreement in place will protect you from personal liability and the financial obligations of your organization, keep relationships with other members smooth and professional, and help guide your LCC from its starting point to success.
The LLC operating agreement, also known as an LLC agreement, establishes the rules and structure for the LLC and can help address any issues that arise during business operations. Most states have default provisions that address many of these difficulties, but the operating agreement can override these presumptions.
Each partner in an LLC is called a "member." With an LLC, a small business operating agreement is a contract among the LLC's members that stipulates the LLC's membership, management, operation and distribution of the company's income.
Incfile provides a lawyer-approved operating agreement template for our Gold and Platinum members to help you create a document that works for your business.