A South Dakota multi-member LLC operating agreement is a legal contract that establishes the ownership, management, and operations of a limited liability corporation owned by two (2) or more members. Members are owners, and can be either individuals or corporations. The operating agreement sets clear expectations around such matters as:
- Where the company will be domiciled;
- Who contributed what capital;
- Who owns what interests;
- How those interests can be transferred;
- How finances and accounting will be handled;
- How the company will be dissolved, if it comes to that;
- and more.
Each member should keep a signed, notarized copy of the agreement on file. The agreement can prevent disputes and shield members’ personal assets from any debts or liabilities the company might face.