A Florida multi-member LLC operating agreement allows the co-owners (or “members”) of an LLC to outline the terms under which they’ve agreed to run their business. Operating agreements help organize the company’s internal affairs by clarifying the management responsibilities of all members. In the absence of an agreement, the members will be exposed to a greater risk of personal liability if the LLC gets sued.

Although executing an operating agreement is entirely optional in Florida, LLCs are encouraged to draft one nonetheless. Once signed, the members will be legally bound to the terms set forth in the contract.