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Texas : LLC Operating Agreement

Operating Agreement for Texas.

The Operating Agreement is the internal document that defines how your Texas LLC actually runs: who the members are, how votes happen, who gets what share of profits, what happens when a member exits. Texas does not legally require an Operating Agreement, but every LLC should have one to override default state statutes that rarely match what members actually want. Texas also recognizes Series LLCs, which let one entity hold multiple cells with separate liability shields. Texas has strong charging order protection, making it one of the better states for LLC asset protection.

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TXDRAFTING FORTexasOA · RECOMMENDEDTX : LLC OPERATING AGREEMENTOperating AgreementTEXAS · LLCARTICLE IFormation, name, principal officeARTICLE IIMembers and contributionsARTICLE IIIManagement and votingARTICLE IVDistributions and taxARTICLE VTransfers and buy-sellARTICLE VIDissolution and wind-upSIGNED BYAll membersOATX!RECOMMENDEDBest practice for every LLC+STRONG ASSET SHIELDCharging order protection
Texas Operating Agreement

What the OA does for your Texas LLC.

What the OA covers

Members and contributions, management structure (member-managed vs manager-managed), voting thresholds, distribution rules, transfer restrictions, buy-sell triggers, dissolution and wind-up procedures, dispute resolution.

Member-managed vs manager-managed

Member-managed: every member has authority to act for the LLC. Manager-managed: only designated managers can act. Picking the right structure for your situation is the single most important OA decision.

Distribution and profit allocation

How profits and losses are allocated (often per ownership percentage, but can be customized). When distributions happen (annually, quarterly, on triggers). Tax allocation rules (especially important for non-pro-rata splits).

Without an OA, state defaults apply

Texas default LLC statute applies whenever the OA is silent. Default rules often surprise founders: equal voting regardless of ownership, no transfer restrictions, no buy-sell provisions, dissolution on member exit. Write the OA so the defaults do not bite you.

Single-member or multi-member

Single-member LLCs still need an OA to preserve the corporate veil and prevent piercing. Multi-member LLCs need an OA to prevent disputes when members disagree. We tailor the template to your member count.

Update when things change

When members join, leave, or contributions change, the OA needs amending. The Compliance Bundle includes 1 OA amendment per year alongside the state-record amendment.

How it works

A clean handoff, in 5 steps.

Tell us about your members

How many members, what each contributed (cash, services, property), what percentage each owns. Single-member is fine.

Pick management structure

Member-managed (every member can act) or manager-managed (only designated managers). We explain the trade-offs.

Set voting and distribution rules

Majority vote vs supermajority vs unanimous for different decisions. How profits are allocated and when distributions happen.

Add transfer and exit provisions

Right of first refusal, buy-sell triggers (death, disability, retirement, deadlock), valuation method. Prevents disputes when members exit.

Review and sign

We deliver the OA as a PDF + editable DOCX to your vault. All members sign. Keep it with your business records (do NOT file with Texas SOS).

Two ways to get yours

One Operating Agreement, or included in the full bundle.

Texas does not legally require an OA, but every LLC needs one to override default state statutes. Either way, this is the document that defines how your LLC actually runs.

Custom OA
$99no state fee
One Operating Agreement, drafted, done
  • Custom Operating Agreement drafted for Texas
  • Member vs manager-managed structure
  • Capital contributions, distributions, voting rules
  • Buy-sell provisions and exit clauses
  • Texas-specific law citations included
  • Single-member or multi-member custom
  • PDF + editable DOCX delivered to your vault
Draft my OA
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Compliance Bundle
$199/yr
OA + formation + everything compliance
  • Operating Agreement included (custom-drafted)
  • Free LLC or Corp formation (no service fee)
  • Registered Agent service in your state (1 entity)
  • Annual Report AutoFile, filed every year on time
  • Certificate of Good Standing (1 included per year)
  • 1 Amendment included per year
  • Deadline monitoring across all your filings
Get Compliance Bundle
Operating multiple entities?
Business OS at $29/mo handles OAs and bylaws across your whole portfolio.
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FAQ

Common questions.

Does Texas require an Operating Agreement?

A handful of states legally require one, but most, likely including Texas, do not, which is exactly why people skip it and regret it. Required or not, banks, investors, and courts expect to see one, and without it your LLC runs on Texas's default statutory rules whether or not those fit you. Treat it as essential even where Texas makes it optional, because it is what turns a generic LLC into one governed on your terms.

Do I file the OA with Texas Secretary of State?

No. The Operating Agreement is an internal document you keep in your records; you do not file it with Texas, and the state does not want it. Only your formation document is filed publicly. That privacy is a feature: your ownership splits and management terms stay confidential while remaining legally binding among the members. We prepare it to sit alongside your public formation filing, not inside it.

Do single-member LLCs in Texas need an OA?

Yes, arguably more than multi-member ones. For a single-member LLC the Operating Agreement is key evidence that the company is separate from you personally, which is what preserves the liability shield if someone tries to pierce it in Texas. It also tells banks who controls the company and directs what happens if you are incapacitated. Skipping it because it is just you is the common and costly mistake.

What if I have an OA but want to change it?

You amend it. The agreement should state its own amendment process, usually a member vote at a set threshold, and you document the change in writing and keep it with the original. You do not refile anything with Texas for an internal amendment. Common triggers are adding a member, changing ownership percentages, or switching management structure. We prepare amendments that fit Texas and your existing agreement so the change actually holds.

What does the Operating Agreement cover?

The decisions that cause fights if left unwritten: who owns what percentage, how profits and losses are split, whether it is member- or manager-managed, how members vote, how new members join, and how someone exits or is bought out. A strong one also covers deadlock, the death or disability of a member, and dissolution. The point is to settle the hard questions while everyone still gets along, not during a dispute.

How is the OA different from the Articles of Organization?

The articles, or certificate of formation, are the short public document you file with Texas to create the LLC; the Operating Agreement is the private, detailed contract among the members about how the company actually runs. The articles make the LLC exist; the Operating Agreement makes it governable. You need both, and they must not contradict each other. We keep your formation and your agreement aligned.

Can the OA override Texas LLC statute?

Largely yes, which is why it matters. State LLC acts, including Texas's, are mostly default rules that apply only when your Operating Agreement is silent, so a well-drafted agreement lets you set your own terms on management, voting, and distributions. A few provisions are mandatory and cannot be waived, such as certain good-faith duties. We draft to Texas's rules so your terms hold up rather than being quietly overridden by the statute.

What if members later disagree about something not in the OA?

Then Texas's default statute decides for you, and its answer may be one nobody wanted, such as equal say regardless of ownership or no clear buyout path. That is precisely the gap a thorough Operating Agreement closes with deadlock, voting, and exit provisions. If you are already in that spot, we can amend the agreement to add the missing terms before the disagreement hardens into a lawsuit.

Does my OA need to be notarized in Texas?

Generally no. Texas does not require notarization for an Operating Agreement to be valid; the members' signatures make it binding. Some owners notarize anyway for extra proof of who signed and when, and a few banks like to see it, but it is optional. What matters is that every member signs and each keeps a copy with the company records, so the document is there when a bank, court, or new partner asks for it.

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