A Texas multi-member LLC operating agreement serves as a critical framework for companies with multiple managing members, as it guides operational procedures and policies and establishes a structure for tax benefits. While Texas doesn’t require businesses to create this agreement, its absence could expose members to personal financial risk in the face of legal challenges.
Having one on file can also make it easier for the business to get a loan or open a bank account, as awarding financial institutions will have access to the business’s key details when they review the document. These details include member roles, contributions, management style, and protocols for potential dissolution.
