A Vermont multi-member LLC operating agreement is an important internal document drafted by the founding members of a multi-member limited liability company to outline the internal affairs of the business. Provisions such as contributions and distributions, meetings and voting rights, succession of members, dissolution of the company, and indemnification are crucial clauses included in this agreement.
Since the Vermont laws that govern LLCs are rather broad and wide-sweeping, it’s not always best to let the default rules of the state dictate the outcome of legal disputes, should any arise during the company’s existence. The operating agreement allows the members to create their own rules, regulations, terms, and conditions that apply specifically to their business entity. Furthermore, the agreement helps define the limited liability status of the company, which can save the members from personal liability.