A limited liability company’s operating agreement or company agreement is similar to a corporation’s shareholder agreement, and provides for the management of the LLC, and the rights and duties of the owners of the LLC (members) and the managers of the LLC, if any.

Specifically, the LLC operating agreement should address the company’s finances, capital contributions, percentages of ownership, voting rights, meetings, notices, buyouts, distribution of profits and losses, officers, and other matters. Limited liability companies generally may be managed by the members or by appointed or elected managers.

In Colorado, a limited liability company (LLC) is governed by an operating agreement, which is a key document that outlines the management structure and the rights and responsibilities of its members and managers. While not legally required in Colorado, it is highly recommended to have an operating agreement to avoid default state rules under the Colorado Revised Statutes. The operating agreement should detail the financial dealings of the LLC, including capital contributions, ownership percentages, and the allocation of profits and losses. It should also specify voting rights, the procedures for holding meetings and issuing notices, and the protocols for member buyouts. Additionally, the agreement can outline the appointment of officers and the roles of elected or appointed managers if the LLC is not member-managed. The flexibility of an LLC's operating agreement allows it to be tailored to the specific needs of the business, but it must comply with applicable state laws, including those that govern the formation and operation of LLCs.