A Tennessee limited liability company operating agreement concerns the rights and powers of a company’s business owner(s) or partners. Since this is put in writing, Tennessee LLC members will be able to refer to a consistent rulebook that shall guide them in managing their company. Furthermore, a signed and notarized document acts as a marked declaration of the company policy, tax status, and business goals. Documenting such intent can prove crucial when required to demonstrate membership powers or the status of a company.
After performing their research, meeting with the appropriate consultants, and concluding their negotiations, Tennessee business owners should execute this agreement with a notary and retain it for reference.
Is it REQUIRED in Tennessee?
Yes. Tennessee requires that board-managed LLCs have an operating agreement, while member-managed LLCs do not have this requirement; they may also adopt one.
By Type
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State Definition
“(a) “Operating agreement may contain any rules, regulations, or provisions regarding the management of the business of the LLC, the regulation of the affairs of the LLC, the governance of the LLC, the conduct of its business, and the rights and privileges of members (financial rights, governance rights and membership rights of members), to the extent that such provisions are not inconsistent with the laws of this state or the articles.”
