A Virginia limited liability company operating agreement should be composed when the members of a company have agreed on how the company will be run and the rules by which it will be governed. This establishes the protections afforded to the Virginia limited liability company members since items such as the company’s tax status will be declared. Here, quite a few topics will need to be covered, ranging from the company’s day-to-day operations to the management power of each member (or owner).
When developing the content of this document, it is important to keep in mind that the more definitions regarding the member powers, financial responsibilities, and hierarchy of the company, the less possibility for confusion or hearsay in the future.
No. The Virginia LLC operating agreement is not required in this state. Members, however, are strongly advised to research and negotiate one, then draft and execute a comprehensive agreement as a precaution and a matter of efficiency.
Single-Member LLC operating agreement – A Virginia limited liability company should download and utilize this contract if the company has only one (1) member and no more.
Multi-Member LLC operating agreement – The Virginia company contract that Virginia LLCs with more than one (1) member must execute to define its business activity.
“‘Operating agreement’ means an agreement of the members as to the affairs of a limited liability company and the conduct of its business, or a writing or agreement of a limited liability company with one member that satisfies the requirements of subdivision A 2 of § 13.1-1023.”