A Virginia multi-member LLC operating agreement is a written form containing the rules and regulations that pertain to the management and operation of a limited liability company consisting of at least two (2) members. This document is a crucial governing document that will define how the company is run, what rights and obligations the members have, and what happens in the event of a member’s death or the dissolution of the entity.
While it is not a requirement that LLCs create an operating agreement, the members will find that there are a number of benefits to drafting this document. One of the most obvious is that the operating agreement solidifies the members’ limited liability status. By defining the roles and rights of the members, a court of law will see that the business entity (and its profits and losses) is completely separate from the assets of each member.