Operating agreements: the document banks keep asking for

An operating agreement is the internal contract of an LLC: who owns what percentage, who runs the company, how profits are split, and what happens when a member leaves, dies, or wants out. Unlike your articles of organization, it is not filed with the state, it lives in your records, signed by the members.

That privacy is exactly why third parties ask to see it. The state's records say your LLC exists; the operating agreement says who is authorized to act for it. Banks in particular ask for one when you open the business account, especially for multi-member LLCs.

What's actually in one

A standard agreement covers formation facts (name, state, purpose), members and their percentage interests, capital contributions, how profits and losses are allocated, management (member-managed or manager-managed, this should match your articles), banking authority, transfer restrictions, and dissolution rules.

Single-member LLCs get real value from even a short one: it's evidence that the company is a separate entity you treat formally, which is the entire point of the liability shield. Multi-member LLCs shouldn't operate a day without one, every co-owner dispute you've ever heard of is cheaper to settle on paper, in advance.

Do you legally need one?

A handful of states (California and New York among them) require LLCs to have an operating agreement in some form, and New York wants it within 90 days of formation. Most states don't require one at all, but 'not required by the state' and 'not needed' are different things: the bank, your co-owners, and any future buyer of the business will all want to see it.

Getting one

Complex ownership, investors, unequal splits tied to work contributions, vesting, belongs with an attorney. For standard situations, a self-help agreement works: our $79 add-on drafts one for your LLC at checkout (single-member agreements arrive complete; multi-member agreements include a member schedule your members finish when they sign). It's a self-help document, not legal advice, and you can also find free templates and fill one in yourself.