A Michigan limited liability company operating agreement is used to define several characteristics of LLCs. Here, the membership interests, capital contributions, profit distributions, and other relevant details that the business owners or partners wish to apply will be put in writing. Therefore, Michigan business owners should be encouraged to take every avenue of research available even before the negotiation process begins.
This document must accurately represent how the signature Michigan LLC members will manage their company. Once signed, each Michigan LLC member should have ready access to this contract as it will be considered the rulebook for the company.
Is it Required in Michigan?
No. Michigan limited liability companies can form and operate with or without an operating agreement. The State of Michigan currently has no statutes requiring one to be put in place by limited liability companies.
Single-Member LLC operating agreement – The contract needed by a limited liability company with no more than one (1) member.
Multi-Member LLC operating agreement – The contract utilized by limited liability companies with two (2) or more members.
(r) “Operating agreement” means a written agreement by the member of a limited liability company that has 1 member, or between all of the members of a limited liability company that has more than 1 member, pertaining to the affairs of the limited liability company and the conduct of its business. The term includes any provision in the articles of organization pertaining to the affairs of the limited liability company and the conduct of its business.”