Traditional companies ask lawyers and incorporation firms to help them set up operating agreements. Operating agreements define the members, ownership, terms, and voting rights of a business. It establishes corporate governance. Common elements of operating agreements include:
Binding Authority: which individuals have the authority to sign contracts for the company.
Duties: the powers of each member and manager of the company.
Meetings: the frequency of meetings to be held and attended by members each year.
Members: the names of each person who owns part of the company, and how new members may join or old members leave — done to make internal transitions smoother.
Ownership: the percentage of each member’s share of the company, often based on the capital contributions or money each person gives.
Term: how long the company will exist or when it should be dissolved or continued.
Transferring Interest: how members can buy or sell their interest in the company.
Voting: whether a majority vote or unanimous consent is required from members on certain decisions that impact the company1.
The operating agreement assures that in the case of conflict, judicial processes may interpret the document. It’s very common to have litigation following payouts, liquidations, or changes of management This slow, arduous process drains valuable resources and wastes time. It also provides distinct advantages to the parties that are willing/able to pay for superior (or incessant) legal teams. This usually places employees and “the little guy” at a disadvantage. Even if employees have been wronged by their company, they recognize that the process and costs of objection exceed the payouts. Deeper pockets often win.
Outline borrowed from https://legaltemplates.net/form/lt/llc-operating-agreement/