Updated on November 29th, 2021
A Wisconsin multi-member LLC operating agreement is a form created to establish a limited liability company’s purpose, operations, management structure, and the rights and obligations of its member. While the state of Wisconsin has not made it a legal requirement for LLCs to draft an operating agreement, there are many benefits to having one in place.
One of the primary advantages is it clearly defines each member’s contribution to the entity, their right to a certain percentage of the distributions, and their specific responsibilities. Furthermore, the provision concerning indemnification indicates that the members’ personal assets should never be associated with the assets or liabilities of the company.