Updated on November 17th, 2021
A Montana multi-member LLC operating agreement is an internal contract that allows founding members to lay out company policies that will govern how the LLC is run. The execution of this document helps to avoid conflict between members and protects their personal assets, ensuring each owner is only liable for up to their initial capital contribution to the LLC.
Montana law does not state that this document is required; however, without an agreement, the state’s default LLC legislation will govern the company’s internal operations. Even if the state rules are in line with the company members’ interests, they are subject to change; the operating agreement will allow its members to run their company as they see fit.