It is possible to not have a written operating agreement in most states, but you are not advised to begin a business without one. The following are a few reasons why an operating agreement is necessary: By showing that you have been meticulous about organizing your LLC, it aids in guaranteeing that courts will be respectful of your personal liability protection. Rules that regulate how profits will be separated, the process for making major business decisions, and the measures for handling the departure and addition of members are established. It aids in avoiding misunderstandings between the owners and management over finances. It prevents your LLC from being regulated by the default rules in the LLC laws of your state, which may not be to your advantage.