A South Carolina multi-member LLC operating agreement is a contract between the members of a new limited liability company (LLC) that establishes the internal structure and rules of their company. The completed document will serve as a rulebook for the members and will dictate how the company ownership is divided, how the LLC will be taxed, and what should happen if a member is incapacitated or the company is sold or dissolved.
An operating agreement isn’t mandatory for LLCs in South Carolina. However, one may be required when opening a company bank account or applying for a loan. Furthermore, the contract provides the members with protection from company liabilities and debts.