A Washington multi-member LLC operating agreement outlines the ownership structure and standard operating procedures of a company jointly owned by two (2) or more members. The document establishes:

• Members’ initial contributions;
• The process for allocating profits and losses;
• How the company will deal with legal matters;
• Powers and duties of members;
• How members will be reimbursed;
• How expenses will be paid;
• How taxes, banking, and accounting will be managed;
• How membership will be transferred;
• How the company will be wound up;
• and more.

The operating agreement can be crucial in resolving disputes and can also shield members’ assets from liabilities to which the corporation is exposed. Each member should keep a copy on file.