California LLC Operating Agreement
An operating agreement is essential for any California LLC. It defines the rules and organizational structure of a company, and acts as a legally binding agreement between LLC members to determine many important facets of your company, including voting, membership interest, allocating profits and losses, and dissolution (should it ever come to that).
Creating a strong operating agreement is important, but it can be tricky. At Northwest, we offer a range of free, attorney-drafted operating agreement templates you can use to get started on your own.
Is an operating agreement required in California?
No. California state law does not require you to create and maintain an operating agreement for your LLC.
Do I have to file my operating agreement in California?
Nope. In fact, if you try to file your operating agreement with the state, it won’t be accepted. Your operating agreement is an internal document that you keep on record with your LLC.
Does a single-member LLC need an operating agreement?
As with any LLC, a single-member LLC isn’t required to have an operating agreement in California, so why bother?
While it may seem nonsensical to write an agreement for yourself with yourself, an operating agreement is still important for a single-member LLC when it comes to certain tasks, like opening a bank account or—perhaps most importantly—proving your limited liability status.
*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.