A Kentucky multi-member LLC operating agreement contains the policies that govern a limited liability company’s membership structure and internal operations. It is recommended that LLCs implement an operating agreement during the initial states to define the specifics of how their business will be managed, rather than having Kentucky state statutes determine how their business will run. The agreement also helps to establish the entity as an LLC, holding the company liable for any potential financial damages and, in turn, protecting its members.

Once created, operating agreements do not need to be filed with the Secretary of State and can be kept in the company’s personal records.