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 Rhode Island, a limited liability company (LLC) is governed by an operating agreement, which is a key document outlining the management structure and operational guidelines of the company. This agreement is akin to a corporation's shareholder agreement. Rhode Island law does not require an LLC to have an operating agreement, but it is highly advisable to have one to establish clear rules and prevent disputes. The operating agreement should detail the financial arrangements, including capital contributions and the allocation of profits and losses. It should also specify ownership percentages, voting rights, procedures for meetings and notices, and terms for buyouts. Additionally, the agreement can outline the roles and responsibilities of officers and the management structure, indicating whether the LLC will be member-managed or manager-managed. While Rhode Island statutes provide default rules for LLCs, an operating agreement can tailor the governance of the LLC to the specific needs of its members.