A California LLC Operating Agreement is a legal document that outlines how a California LLC will be run. California LLC Operating Agreements list all LLC owners (known as “Members”), their contribution amounts, and their ownership interest percentages. They also establish the general operating rules of your LLC, including how voting will work, buy-out provisions, and the management structure.
Yes, California LLCs are required to have an Operating Agreement and this agreement (and all amendments to it) must be kept with the company’s records.
According to the California Corporations Code, “Each limited liability company shall maintain in writing or in any other form capable of being converted into clearly legible tangible form at the office referred to in subdivision (a) all of the following: [. ] (5) A copy of the limited liability company’s operating agreement, if in writing, and any amendments thereto, together with any powers of attorney pursuant to which any written operating agreement or any amendments thereto were executed.”
Topics not expressly outlined in your Operating Agreement are governed by California Corporations Code Title 2.6: California Revised Uniform Limited Liability Company Act (Cal Corp Code § 17701.01 through 17713.13).
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