An Alabama multi-member LLC operating agreement is a legal document that outlines the internal workings and regulations governing a limited liability company with multiple owners. The state does not mandate an operating agreement for formation, but it is highly recommended for clarifying ownership percentages and operational procedures, particularly when capital contributions are involved.
While oral arrangements are allowed, a written contract offers solid legal protection, ensuring that the entity, not individual members, assumes liability in legal matters. Although not required to be filed with the state, all active members, officers, managers, and registered agents should sign and keep a copy of this agreement. Its completion typically coincides with the business’s formation phase, reflecting the company’s core principles and future strategies.
