Document background
The Member Managed LLC Operating Agreement is a foundational document used when establishing a member-managed limited liability company under German law. This structure is particularly suitable for small to medium-sized businesses where the owners wish to maintain direct control over daily operations while benefiting from liability protection. The agreement must comply with German corporate law, particularly the GmbHG, while establishing clear protocols for member participation in management, capital contributions, profit distribution, and decision-making processes. It's essential for businesses where members want to actively participate in management rather than appointing external managers, making it popular among startups, family businesses, and professional service firms. The document serves as the primary governance framework, detailing everything from operational procedures to member exit strategies, while ensuring compliance with German regulatory requirements.
