A Pennsylvania multi-member LLC operating agreement allows the owners (the “members”) of a newly formed limited liability company (LLC) to establish the rules and procedures of their company. The completed document will determine each member’s percentage of company ownership, as well as their rights and responsibilities within the entity. The terms of the contract can protect the members from personal liability by separating their personal assets from the LLC.
The operating agreement is an internal document that should be stored in the company’s registered office and isn’t filed with the state. Although LLC members aren’t legally required to enter into an agreement, one is often necessary for banking, investment, and tax purposes to prove the entity’s status as an LLC.