A Rhode Island multi-member LLC operating agreement is a legal document that the founding members of a limited liability company (LLC) execute to control the operations of their business. Although LLCs aren’t legally required to draft an agreement in Rhode Island, the document provides several benefits and is often needed when opening a bank account or applying for a loan.

Drafting an operating agreement allows the members to establish how they will be taxed, and what should happen if a member is incapacitated or if the company is sold or dissolved. In the absence of an operating agreement, the entity will be governed by state law, which may go against the members’ interests.