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 North Carolina, a limited liability company (LLC) is governed by the North Carolina Limited Liability Company Act. The operating agreement is a key document for an LLC as it outlines the company's structure and the rules for its operation. While not required by state law, it is highly recommended to have an operating agreement to provide clear guidance on the management of the LLC, the rights and duties of members, and procedures for handling various business matters. The operating agreement should address financial affairs, including capital contributions, ownership percentages, and the distribution of profits and losses. It should also detail voting rights, meeting protocols, notice requirements, and procedures for buyouts or transfers of membership interest. The agreement can specify whether the LLC will be member-managed or manager-managed and may include information about the appointment of officers. Without an operating agreement, the default provisions of state law will apply, which may not align with the members' intentions. Therefore, drafting a comprehensive operating agreement tailored to the specific needs of the LLC and its members is crucial for the smooth operation and management of the company.