Updated on November 29th, 2021
A West Virginia multi-member LLC operating agreement is a form used by the founding members of an LLC to establish how their entity will be managed and structured. Due to the advantage of flexibility in a limited liability company setup, the members of the entity can specify in the agreement how the profits will be divided, the initial capital contribution, and other important obligations of each member.
In addition to providing a flexible business structure, LLCs are advantageous because the members’ personal assets are separate from the business’s assets, which protects them from being personally liable. The operating agreement defines the role of each member so that if any legal dispute should arise, internally or externally, the document can be used to prove that each member is personally independent from the entity.