Updated on November 29th, 2021
A Utah multi-member LLC operating agreement is a form that governs the internal structure of a multi-member limited liability company. The founding members of the company will include provisions that outline important aspects of the company’s operation, such as management type, member contributions, allocation of assets, succession, and dissolution.
Without an LLC operating agreement in place, the default rules and regulations of Utah statutes will be applied, which may leave the LLC more vulnerable should legal disputes arise. Another benefit to employing an operating agreement is that it strengthens the members’ limited liability status so their personal assets are never included with those of the LLC.