A Mississippi limited liability company operating agreement is an enforceable contract whether it is signed by the sole member of an LLC or by the members of a multi-member limited liability company. Mississippi LLCs, especially long-lived ones, can benefit from this document as it provides a written historical record of membership criteria and responsibilities. For instance, the manner in which profits are released to the members, each one’s authority, and their required contributions are just some subjects they must agree upon.
Mississippi business owners should also include their company policies and the tax status of their company as part of this agreement. Mississippi company owners are therefore encouraged to hold a consultation with an industry professional, an attorney, or a well-versed accounting consultant before executing their signature.
Is it Required in Mississippi?
No. Mississippi state laws do not regulate limited liability companies to implement and maintain operating agreements. However, if an operating agreement is made, it must be readily accessible in the Mississippi limited liability company’s files.
Single-Member LLC operating agreement – Developed for limited liability companies with one (1) member and no more.
Multi-Member LLC operating agreement – Used by limited liability companies with two (2) or more members.
“(t) “Operating agreement” or ‘limited liability company agreement’ means any agreement, whether referred to as a limited liability company agreement or otherwise, written, oral or implied, of the member or members as to the affairs of a limited liability company and the conduct of its business. A member or manager of a limited liability company or an assignee of a financial interest is bound by the operating agreement whether or not the member or manager or assignee executes the operating agreement. A limited liability company is not required to execute its operating agreement. A limited liability company is bound by its operating agreement whether or not the limited liability company executes the operating agreement. An operating agreement of a limited liability company having only one (1) member shall not be unenforceable by reason of there being only one (1) person who is a party to the operating agreement. An operating agreement may provide rights to any person, including a person who is not a party to the operating agreement, to the extent set forth therein…”