Asked by Carter Murphy on Mar 10, 2024

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A(n) ________ is created when members for an LLC decide to form and create their organization.

A) operating agreement
B) shareholders agreement
C) member contract
D) corporate agreement
E) partnership agreement

Operating Agreement

A document that outlines the governance and operating procedures of a limited liability company (LLC) among its members.

LLC

Limited Liability Company, a business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation.

Organization

An entity, such as a company or society, formed by a group of people for a particular purpose.

  • Understand the legal requirements for forming and operating a limited liability company (LLC).
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Verified Answer

AA
Amanda Auger

Mar 10, 2024

Final Answer :
A
Explanation :
An operating agreement is created when members of an LLC (Limited Liability Company) decide to form and create their organization. This document outlines the business's financial and functional decisions including rules, regulations, and provisions. The purpose is to govern the internal operations of the business in a way that suits the specific needs of the business owners.