How to Write an LLC Operating Agreement (Step-by-Step Guide for Beginners)

Get started with LegalZoom to form your business the right way, handle legal paperwork with ease, and get expert guidance every step of the way here: https://startupwise.com/legalzoomoperatingagreement/ In this video, I go over how to write an Operating Agreement for your LLC, breaking it down into clear, step-by-step instructions so you can create a legal document that protects your business. An operating agreement outlines your LLC’s ownership, management structure, and rules, and even if your state doesn’t require one, having it in place prevents default state laws from deciding how your business is run or how profits are split. Our favorite business must-haves: 💳 Best business credit cards: https://startupwise.com/creditcards 🏦 Novo (best business bank): https://startupwise.com/novo 🖥 Best AI website builder ($3/month using code STARTUPWISE): https://startupwise.com/hostinger/ ⚙ Northwest (best $39 LLC formation service): https://startupwise.com/northwestLLC 🎃 Try Gusto and get a $100 gift card with our link: https://startupwise.com/gusto 👨💼 Best overseas staffing agency (save 80% on payroll): https://paired.so/startupwise Be sure to watch this video until the end because I’ll walk you through why every LLC, whether single-member or multi-member, needs an operating agreement and how it can protect you from disputes, clarify decision-making, and satisfy bank requirements for opening a business account. You’ll also learn how this document ensures you maintain liability protection and sets clear rules for handling profits, losses, and ownership changes. We’ll cover exactly how to write an operating agreement for your LLC, including what details to list at the top, how to define ownership percentages, set profit distribution rules, and establish decision-making processes. I’ll also show you what to include about meetings, recordkeeping, dissolution, and liability protections so your LLC remains legally sound. By the end, you’ll have a clear template you can use, saving time, avoiding costly mistakes, and making sure your LLC operates exactly the way you want. If you found this video helpful, be sure to check out our other videos on: How to Draft an Operating Agreement Using LegalZoom 2025 (Steps & Tips): https://youtu.be/hAWYleesXkI How to Register a Copyright with LegalZoom 2025 (Complete Guide): https://youtu.be/k9CBrut9jq4 Request New Videos Here: https://forms.gle/k9TtfauggkEpAWNQA More tutorials on our website: https://www.startupwise.com Thanks for watching! I hope you have a wonderful day! – Sam #LLC #OperatingAgreement #LegalDocument Timeline: 0:00 - Introduction 0:39 - What Is an Operating Agreement and Why Your LLC Needs One 1:11 - Step-by-Step Operating Agreement Walkthrough 5:41 - Understanding LLC Liability and Member Protection 6:31 - How to Create an Operating Agreement with LegalZoom 9:51 - Conclusion Disclaimer: Some of the links above may be affiliate links, meaning I may receive a small commission if you click on them. The commission is paid by the retailers at no cost to you, and this helps to support our channel and keep our videos free. Thank you! All info from our videos is compiled from online sources and our own experience, and we encourage you to do your due diligence. We appreciate your viewership! In addition, we are not financial advisors. StartupWise does not provide tax, legal, or accounting advice. The ideas presented in this video are for entertainment purposes only. Please do your due diligence before making any financial decisions.