A New Jersey multi-member LLC operating agreement sets forth the internal business policies of a limited liability company with multiple members. The execution of this agreement gives all members a more detailed understanding of the company procedures and rules, so there will be fewer disputes and conflicts between members. Clear guidelines are provided in the document regarding the division of profits and losses, bookkeeping, and what will happen in the event that a member is deemed incompetent, is incapacitated, or dies.

The operating agreement also helps separate the business entity from the owners, thereby protecting each owner’s personal assets should the company face litigation or debt issues.