Updated on March 29th, 2022
The Michigan multi-member LLC operating agreement is used by limited liability companies with at least two (2) members to formulate their company’s internal operations and structure. Michigan law does not require an operating agreement to be in place for an LLC to function; however, the execution of the document may prove beneficial to company owners to establish the relationship between members and the company.
Without the agreement in place, default state LLC laws will dictate how the company will operate internally. State laws may not sufficiently cater to the members’ needs when it comes to the distribution of profits and losses or what will happen if a member dies or becomes incapacitated.