Updated on November 8th, 2021
An Idaho multi-member LLC operating agreement is a legal document drafted to put in place a new limited liability company’s policies and structure. The document will regulate the owners’ power, functions, entitlement, and responsibilities, while also breaking down their ownership percentages and initial capital contributions.
Without an operating agreement, LLCs must conform to the state’s default laws for administration and organization, which may not be ideal for the company’s objectives. Members will also have less protection against financial and legal liability without the agreement’s indemnification clause.