A Georgia LLC Operating Agreement sets forth a formal arrangement to convey a legal understanding about how a limited liability intends to be run. The document contains language to confirm details associated with member rights, responsibilities, distributions, and initial investments. Additional sections allow for designations regarding company guideline changes, buyouts, and dissolution. Georgia state government does not officially mandate operating agreements to form a limited liability company, but doing so is strongly suggested.
Definitions – “Operating Agreement” means any agreement, written or oral, of the member or members as to the conduct of the business and affairs of a limited liability company. In the case of a limited liability company with only one member, a writing signed by that member stating that it is intended to be a written operating agreement shall constitute a written operating agreement and shall not be unenforceable by reason of there being only one person who is a party to the operating agreement. A limited liability company is not required to execute its operating agreement and, except as otherwise provided in the operating agreement, is bound by its operating agreement whether or not the limited liability company executes the operating agreement. An operating agreement may provide enforceable rights to any person, including a person who is not a party to the operating agreement, to the extent set forth therein (§ 14-11-1001(18)).
Multi-Member LLC Operating Agreement – Applies paperwork to demonstrate an understanding of an LLC’s operation procedures related to a company owned by multiple individuals.
Single-Member LLC Operating Agreement – Appoints regulating guidelines concerning the management of a limited liability company run by a single owner.
