Operating Agreement
The internal governing document of an LLC that specifies ownership, management, voting, profit distribution, and dissolution rules.
The Operating Agreement is the LLC's internal contract among members. Wyoming and most states do not require it to be filed publicly, but every U.S. bank requests it during KYB and most platforms require it for verification. A non-resident-owned single-member LLC needs an Operating Agreement that names the sole member, designates the manager, and specifies distribution terms — this is what lets a bank confirm signing authority. Template OAs from formation services are usable but should be reviewed for member-name spellings that exactly match passport.
Also known asLLC Operating Agreement, OA
Related terms
- LLC — A U.S. legal-entity form combining the limited liability of a corporation with the pass-through taxation of a …
- Articles of Organization — The state-filed document that legally creates a U.S. LLC.…
- KYB — The verification process U.S. financial institutions perform on a legal entity (LLC, corporation, partnership)…
- Single-Member LLC — An LLC with only one owner, taxed by default as a disregarded entity (sole proprietorship for tax purposes).…