An Illinois LLC Operating Agreement assists in providing documentation of proposed expectations on how a limited liability company plans to maintain itself as a reference and legal resource. The paperwork is helpful when setting up an LLC to correctly detail information related to ownership, distribution, and voting privileges moving forward with operations. Illinois Department of Business Services does not require that an operating agreement be finalized for a business to effectively create an LLC, but it is recommended.
Operating Agreements – § 805 ILCS 180/15-5
Definitions – “Operating Agreement” means the agreement under Section 15-5, whether or not referred to as an operating agreement and whether oral, in a record, implied, or in any combination thereof, of all of the members of a limited liability company, including a sole member, concerning the relations among the members, managers, and limited liability company. The term “operating agreement” includes amendments to the agreement (§ 805 ILCS 180/1-15).
Multi-Member LLC Operating Agreement – Sitautes a recorded understanding to institute stipulated operating measures and regulations related to an LLC managed by more than one individual.
Single-Member LLC Operating Agreement – Initiates a record of sules and pan LLC runs LLC run by one individual intends to employ.
