An Alabama LLC operating agreement is a document that establishes the ownership and entity structure of a company. It is the only document that records the owners of the company and any other terms and conditions between its members.
An operating agreement is required to be signed by all the members of the LLC and, after execution, must be kept in a safe and accessible place. The form is NOT filed with any government office
Is it Required in Alabama?
No, an LLC operating agreement is not required, by law, in the state of Alabama to be completed. Although, it is highly recommended for the parties of an LLC to complete if there is more than one (1) member.
By Type
Single-Member LLC Operating Agreement – For a company with one (1) owner.
Multi-Member LLC Operating Agreement – For a company with two (2) or more owners to establish the ownership and rules of operation.
State Definition
(l) LIMITED LIABILITY COMPANY AGREEMENT means any agreement (whether referred to as a limited liability company agreement, operating agreement or otherwise), written, oral or implied, of the member or members as to the activities and affairs of a limited liability company or series thereof. The limited liability company agreement of a limited liability company having only one member shall not be unenforceable by reason of there being only one person who is a party to the limited liability company agreement. The limited liability company agreement includes any amendments to the limited liability company agreement.
Statutes
- Section 10A-5A-1.08 – Limited liability company agreement – Scope; function; and limitations.
- Section 10A-5A-1.09 – Limited liability company agreement – Effect on limited liability company and persons admitted as members.
- Section 10A-5A-1.10 – Limited liability company agreement – Effect on third parties and relationship to writings effective on behalf of limited liability company.
