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 Vermont, a limited liability company (LLC) is governed by an operating agreement, which is a key document outlining the management structure and the rights and responsibilities of its members and managers. Vermont law does not require an LLC to have an operating agreement, but it is highly advisable to have one. The operating agreement typically includes details on the LLC's finances, member 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 and the management structure, indicating whether the LLC will be member-managed or manager-managed. Vermont's statutes provide default rules that apply in the absence of an operating agreement or if the agreement does not cover certain aspects of the LLC's operations. However, an operating agreement can override many of the default provisions, giving members flexibility to structure their company according to their specific needs and preferences.