Updated on November 29th, 2021
A Washington multi-member LLC operating agreement is an administrative document drafted by the owners of a multi-member limited liability company to establish clear rules regarding the business’s operations, internal affairs, and member obligations. Although an operating agreement isn’t mandatory by law, executing one has a number of benefits for the owners of the LLC.
Protection from personal liability is perhaps the most enticing element of a limited liability company’s structure. With that in mind, the operating agreement will set forth the rights and responsibilities of the members, and will clearly define their relationship to the entity so that their personal assets are never intermingled with the assets and liabilities of the business.