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What is an operating agreement?

An Operating Agreement is a more detailed description of the structure and rules of your LLC.

Lenders will sometimes require one to specifically bind an asset (a motorhome for example) to the LLC. It can also be used to spell out member's rights and obligations, formalize rights of survivorship and specify anything else the members want made official.

Operating Agreements are not filed with the State of Montana but do become part of an LLC's organizational structure.

If you require an Operating Agreement we can prepare a draft, standardized document that will satisfy lender's requirements and can be edited as required. Our fee for this service is $150 and includes a Borrowing Agreement and a Letter of Commitment, two other documents your lender may require. To have us prepare an Operating Agreement for you, click here.

Note: Your lender may require your LLC have an EIN (Employer Identification Number) rather than, or in addition to, your social security number. You can apply for one yourself here or have us do it for you here for a $50 fee..