A Maryland limited liability company operating agreement is a widely recommended internal contract between the business owners of an LLC. As a signed contract, it will bind each signature member to the limited liability company and vice versa. Technically, this can be an oral agreement; however, such a contract could be subject to misunderstandings and hearsay. Furthermore, an oral agreement provides little proof as time progresses. A written contract would be considered hard evidence by its reviewers as being definitive and dated, especially if it is notarized upon signing.
Is it Required in Maryland?
No. Maryland limited liability companies are not under any legal obligation to implement or maintain an operating agreement. However, many consider it unwise to run a limited liability company in any state without a written operating agreement in place.
Templates (2)
Single-Member LLC operating agreement – The operating agreement used by limited liability companies with no more than one (1) member.
Multi-Member LLC operating agreement – The operating agreement used by limited liability companies with at least two (2) members.
State Definition
(q) – “’Operating agreement’ means the agreement of the members and any amendments thereto concerning the matters described in § 4A–402(a) of this title.”
Statute
