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 Wisconsin, 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. While Wisconsin law does not require an LLC to have an operating agreement, it is highly advisable to create one to ensure clear guidelines for the operation of the company. 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 define the roles of officers and set forth the management structure, indicating whether the LLC will be member-managed or manager-managed. The Wisconsin Statutes Chapter 183 covers the legal framework for LLCs, and while it provides default rules for LLCs without an operating agreement, having a well-drafted operating agreement allows members to tailor the governance of the LLC to their specific needs.