The terms governing the limited liability company, its interests, operations, management, and clauses controlling the rights and obligations of its members are laid out in a Delaware LLC Operating Agreement. Above all others, it serves as the LLC’s primary governing document.
The freedom of contract legal principle in Delaware enables the LLC’s founders, who determine the LLC’s parameters and supervise the creation of the Operating Agreement (among other powers and responsibilities), a great deal of latitude in outlining the obligations of the LLC members. This indicates that the LLC Agreement will enable you to establish an entity and specify the relationships among its members in accordance with your particular circumstances. One of the most important benefits of a Delaware LLC is the freedom to define your own rules and regulations through the LLC Operating Agreement. As a result, more than 70% of business owners choose to form an LLC rather than any other type of business entity.