Updated on November 29th, 2021
A Tennessee multi-member LLC operating agreement is an internal document drafted by the members of a limited liability company to organize the structure and management of their business. This document does not need to be filed with the Secretary of State, unlike the Articles of Organization, nor is drafting one a legal requirement to be a legitimate company.
Most LLCs will create an operating agreement to avoid state-imposed default rules, maintain limited liability status, encourage investors, open bank accounts, and clarify the rules of succession. By specifying these important details about the business in an agreement, it will be easier to resolve disputes between members as well as outside parties.