A Utah limited liability company operating agreement is produced by its members to outline how the company will be managed and their roles. A well-crafted agreement would also solidify the company policies governing voting procedures and rights, its predetermined tax status, the liability protection members may enjoy, and many other topics.
It should be noted this agreement is usually not required by any Utah state government officials, and its completion would not replace the articles of formation required in this state. Thus, it will be up to Utah LLC members to complete this contract internally as soon as possible. The signature of each member will signify that they have researched their roles properly and will comply with the agreement.
Is it Required in Utah?
No. Utah has not set any laws requiring limited liability companies in this state to make an operating agreement. The entity may conduct business as a Utah LLC without an operating agreement in place so long as it follows the state’s procedures for organizing this type of entity.
Single-Member LLC operating agreement – The agreement that a Utah limited liability company that has only one (1) member must use.
Multi-Member LLC operating agreement – The contract that a multi-member limited liability company in Utah requires to solidify its policies and regulations.
“(16) ‘Operating agreement’ means the agreement, whether or not referred to as an operating agreement and whether oral, implied, in a record, or in any combination thereof, of all the members of a limited liability company, including a sole member, concerning the matters described in Subsection 48-3a-112(1). The term includes the agreement as amended or restated.”