If you are considering forming a Missouri limited liability company or have already formed an LLC, but don’t have an LLC operating agreement, you may not be fully protected. Chapter 347.081 of the Missouri Revised Statutes says “The member or members of a limited liability company shall adopt an operating agreement.” If you have failed to do something required by statute, that may make it easier to “pierce the corporate veil” of your company, making it important in a single-member LLC to show that the company is in fact separate from its owner and operates under the terms of the operating agreement. The agreement is similarly important if there is more than one member, but also establishes the contractual responsibilities each member has to the other.
What Is In An Operating Agreement?
Besides a few key matters that relate back to the articles of organization, Missouri law is not restrictive in the content of an operating agreement. The agreement should generally govern the operation of the business, set expectations for each member, establish voting provisions, specify how profits and losses are shared, and address other terms that the member or members deem important to their particular business.