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 Kentucky, a limited liability company (LLC) is governed by an operating agreement, which is an internal document that outlines the management structure and operational guidelines of the company. The operating agreement is not required to be filed with the state but is crucial for defining the rights and responsibilities of the members and managers, as well as the financial and administrative procedures of the LLC. Kentucky law allows LLCs to be member-managed or manager-managed. The operating agreement typically includes details on capital contributions, ownership percentages, voting rights, procedures for meetings and notices, buyout provisions, and the distribution of profits and losses. It may also specify the roles and powers of officers within the LLC. While Kentucky statutes provide default rules for LLCs, an operating agreement can tailor these rules to fit the specific needs of the company. It's important for LLC members to create a comprehensive operating agreement to ensure smooth operation and to help prevent disputes among members.