Operating Agreement
The governing document for an LLC that defines ownership structure, member rights, management authority, profit distribution, and what happens when a member leaves, dies, or disputes arise. California doesn't require one, but operating without one means default state rules apply — and those defaults rarely match what the members actually want.
Where This Matters
→
Entity Formation
→Choosing and setting up the right business structure — LLC, S-Corp, C-Corp, partnership — with California-specific tax implications and long-term planning.
Partner Disputes
When co-owners disagree — from buyout negotiation to mediation to dissolution. Practical guidance for resolving business conflicts without destroying the company.
Related Terms
Need help understanding how this applies to your situation?
Browse All Terms
Enterprise Value (EV)Seller's Discretionary Earnings (SDE)EBITDA MultipleQuality of Earnings (QoE)Add-BacksDue DiligenceLetter of Intent (LOI)Holdback (Escrow)Earn-OutAsset SaleStock Sale (Equity Sale)GoodwillPersonal GoodwillCommunity PropertySeparate PropertyPereira MethodVan Camp MethodTransmutationBuy-Sell AgreementShotgun Clause (Russian Roulette Clause)View all →