Alabama LLC Operating Agreement
An operating agreement is a legal document for your Alabama LLC that officially details the rules and regulations that govern your business, such as distribution of voting power, allocation of profits and losses, day-to-day operations and even—if it ever comes to this—dissolution.
Alabama LLCs aren’t required to have an operating agreement or even file one with the Secretary of State. However, your operating agreement is one of your most important internal documents. That’s why we at Northwest offer a range of attorney-drafted operating agreement templates to suit the needs of your business structure.
Is an operating agreement required in Alabama?
No, an operating agreement is not required in Alabama. However, it’s an important document to have on hand for opening a business bank account, overriding Alabama’s default statutes, and even fighting lawsuits.
Do I have to file my operating agreement in Alabama?
Nope. Your operating agreement is an internal document, which means you’ll keep it on-file with your own business documents.
Does a single-member LLC need an operating agreement?
Yes. It may seem strange when you consider you’re essentially making an agreement with yourself, but your operating agreement is an important legal document. It’s necessary (even for single-member LLCs) for important tasks like opening a business bank account and—perhaps most crucially—maintaining limited liability.
*This is informational commentary, not advice. This information is intended strictly for informational purposes and does not constitute legal advice or a substitute for legal counsel. This information is not intended to create, nor does your receipt, viewing, or use of it constitute, an attorney-client relationship. More information is available in our Terms of Service.