A North Dakota multi-member LLC operating agreement is a contract that lays out the rules, procedures, and ownership structure of a limited liability company (LLC). The completed document will include the company’s purpose, capital distributions, bookkeeping, tax filing, and terms of sale or dissolution. By drafting an operating agreement, the owners (the “members”) of the company prevent any internal conflicts regarding their ownership, investments, rights, and responsibilities.
Like most states, North Dakota doesn’t legally require that LLCs create operating agreements. However, it may be required when applying for loans or seeking investors. Furthermore, it helps protect the members’ personal assets from business liability and debts.