An operating agreement is the name for the internal governing document for an LLC. You’ve probably also heard of a partnership agreement or a shareholders agreement.
When you’re talking about an LLC technically you’re referring to a company operating agreement but either shareholders agreement, partnership agreement or an operating agreement depending on the type of entity is what dictates how your company runs, who has what amounts of ownership, potentially who has what responsibilities and who can sell the business or sell their shares in the business. It really is the most important document that you can have and that you need for your business.
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