An Arizona multi-member LLC operating agreement is a contract that lays out the principal rules that govern the operation and management of a limited liability company. While not mandatory in Arizona, operating agreements are helpful in resolving issues common to LLCs with multiple members (owners), like what should happen if a member becomes incapacitated or decides to transfer their percentage of ownership to another party.

An operating agreement also helps protect the members from personal liability. In the event of a lawsuit, the form can serve as proof that the company’s assets are separate from those belonging to its members.