Washington LLC Operating Agreement: What to Include (2026)

Fact-checked by the LegalGlass editorial team against primary sources · Published Aug 6, 2026 · Last updated Aug 6, 2026

Washington does not legally require an LLC operating agreement, and you never file it with the Secretary of State. But under RCW 25.15, the Washington LLC Act, the agreement - which the statute calls the "limited liability company agreement" - is fully enforceable and can override most of the statute's default rules on management, voting, distributions, and transfers. Every Washington LLC, including a single-member LLC, should adopt one to control how the business is run and to protect the liability shield.

Quick Answer

Required by law?
No - but strongly recommended (RCW 25.15)
Filed with the state?
No - it is an internal, private document
Statute name
"Limited liability company agreement" (RCW 25.15.006, .018)
Default management
Member-managed unless you choose manager-managed
Single-member LLC
Recommended - supports the liability shield
Governs gaps via
RCW 25.15 default rules if you have no agreement

Is an Operating Agreement Required in Washington?

No. Washington's LLC statute, RCW Chapter 25.15, does not make an operating agreement mandatory, and there is no penalty for forming an LLC without one. You also do not file it: the only documents Washington requires are the Certificate of Formation and the yearly annual report, both filed with the Secretary of State. The operating agreement is a separate, internal contract among the members.

Even though it is optional, adopting an agreement is one of the most important steps in setting up an LLC. RCW 25.15.018 gives the agreement broad legal effect: it can define the relations among members, the management of the company, and the conduct of its business, and courts will enforce it. Without an agreement, your LLC is governed entirely by the statute's default rules, which may not reflect what you and your co-owners actually intend. For the general concept, see the national operating agreement guide.

Washington Calls It the "LLC Agreement"

A quick terminology note that trips people up: while most owners and templates say "operating agreement," Washington's statute uses the term "limited liability company agreement" (often shortened to "LLC agreement"). The two mean the same thing - RCW 25.15.006 defines the LLC agreement as any agreement, written, oral, or implied, of the members concerning the affairs of the LLC and the conduct of its business. Because an oral or implied agreement can technically count, a clear written document is far safer: it removes ambiguity and gives you something to point to if a dispute arises. Throughout this page, "operating agreement" and "LLC agreement" are interchangeable.

Why Every Washington LLC Should Have One

An operating agreement does real work even when the law does not demand it:

In short, the agreement is where you convert the flexible LLC form into the specific business deal you actually want. See LLC vs corporation for how this internal governance compares with corporate bylaws.

What to Include in a Washington Operating Agreement

A thorough Washington operating agreement typically covers the following. The statute lets you tailor each of these, so adapt them to your business:

  1. Company basics. The LLC's name, principal place of business, registered agent, and purpose.
  2. Members and ownership. Each member's name and percentage interest, and their capital contributions.
  3. Capital contributions. What each member contributed and rules for future contributions or capital calls.
  4. Management structure. Whether the LLC is member-managed or manager-managed, and the authority of each.
  5. Voting rights. How votes are weighted (per capita or by ownership) and what decisions need supermajority or unanimous consent.
  6. Allocations and distributions. How profits, losses, and cash distributions are shared among members.
  7. Transfers and buy-sell. Restrictions on transferring interests, rights of first refusal, and what happens on death, withdrawal, or divorce.
  8. Dissolution. Events that trigger winding up and how remaining assets are distributed - connect this to dissolving a Washington LLC.

Naming your registered agent in the agreement is a good habit even though the official appointment is on the certificate; see Washington registered agent requirements.

Member-Managed vs Manager-Managed

One of the most important choices the agreement makes is the management structure. In a member-managed LLC, all members share authority to run the business and bind the company - this is the Washington default under RCW 25.15.151 when nothing says otherwise. In a manager-managed LLC, the members appoint one or more managers (who may or may not be members) to run day-to-day operations, while members keep certain major decisions; this structure is governed by RCW 25.15.154.

Member-management suits small, owner-operated LLCs where everyone is active. Manager-management suits LLCs with passive investors, many members, or a designated operator. Whichever you choose, spell it out in the agreement and, where required, reflect it in the certificate of formation, so third parties know who has authority to act. RCW 25.15.157 addresses delegating management rights and powers.

Single-Member vs Multi-Member Agreements

A single-member operating agreement is shorter but still valuable. Its main jobs are to document that the LLC is a distinct entity (reinforcing the liability shield), to name a successor or transfer plan if the owner dies, and to satisfy banks and lenders. Because there is only one owner, voting and distribution provisions are simple, but the separation-of-entity language matters most here.

A multi-member agreement carries the real weight. With two or more owners, the provisions on voting thresholds, capital calls, profit distributions, deadlock resolution, and buy-sell terms are what keep the business functioning when owners disagree. Multi-member LLCs are taxed as partnerships by default, so the agreement should align with the tax allocations reported on the LLC's federal return - see Washington LLC tax filing and the IRS LLC guidance.

Default Rules if You Have No Agreement

If your LLC has no operating agreement, or the agreement is silent on a point, RCW 25.15 fills the gap with its default rules. Those defaults address, among other things:

TopicWashington default (if agreement is silent)Statute
ManagementMember-managed - all members share authorityRCW 25.15.151
Manager authorityApplies only if you elect manager-managementRCW 25.15.154
DistributionsAllocated among members per the statute's rulesRCW 25.15.206
Enforceability of the agreementAgreement controls except for nonwaivable provisionsRCW 25.15.018

The problem with relying on defaults is not that they are unfair, but that they are generic. They will not reflect an uneven ownership split, a special profit arrangement, or restrictions on who can join the LLC. Writing your own agreement replaces the one-size-fits-all statute with terms built for your deal - and RCW 25.15.018 confirms the agreement controls except for a short list of nonwaivable provisions the statute protects.

Signing, Storing, and Updating It

Once drafted, every member should sign the operating agreement, and the LLC should keep the signed original with its company records - not file it with the state. There is no notarization requirement in Washington, and the agreement does not need to be witnessed or recorded, though the signatures and dates of every member are essential to show that each owner assented to the terms. Revisit the agreement whenever ownership changes, a member joins or leaves, you switch between member- and manager-management, or you make an S-corp election that affects distributions. Amend it in writing, following the amendment procedure the agreement itself sets out.

Keeping the agreement current matters as much as having one: an outdated agreement that no longer matches reality can be as confusing as none at all. Store it alongside your Certificate of Formation, EIN confirmation, and annual report records so your governance documents stay in one place.

Frequently Asked Questions

Is an operating agreement required for a Washington LLC?

No. Washington law does not require one and you never file it. But RCW 25.15 makes the agreement enforceable and lets it override the statute's default rules, so it is strongly recommended.

Do I file my Washington operating agreement with the state?

No. It is an internal document kept in your records. Washington files only the Certificate of Formation and the annual report; the operating agreement is never submitted and is not public.

Does a single-member Washington LLC need an operating agreement?

Not legally, but it is recommended. It documents that the LLC is separate from its owner, which helps preserve the liability shield, and banks often ask to see one.

What happens if a Washington LLC has no operating agreement?

The default rules in RCW 25.15 govern management, voting, distributions, and transfers. Those defaults may not match what the owners want, which is why a written agreement is better.

Is a Washington LLC member-managed or manager-managed by default?

Member-managed by default under RCW 25.15.151, unless the certificate or the operating agreement makes it manager-managed under RCW 25.15.154.

Related

Sources

  1. Washington Legislature - RCW Chapter 25.15, Limited Liability Company Act (governing statute; default rules).
  2. Washington Legislature - RCW 25.15.018 (effect of the LLC agreement; nonwaivable provisions).
  3. Washington Legislature - RCW 25.15.006 (definition of "limited liability company agreement").
  4. Washington Legislature - RCW 25.15.151 (member-managed LLCs - default management).
  5. Washington Legislature - RCW 25.15.154 (manager-managed LLCs).
  6. Washington Legislature - RCW 25.15.157 (delegation of rights and powers to manage).
  7. Washington Legislature - RCW 25.15.206 (allocation of distributions).
  8. Washington Secretary of State - LLC & PLLC Filing Resource Page (only the Certificate of Formation is filed, not the agreement).
  9. Washington Secretary of State - Annual Reports (ongoing state filings).
  10. IRS - Limited Liability Company (LLC) (single- vs multi-member tax treatment).
  11. IRS - Get an Employer Identification Number (EIN for the LLC).
  12. Legal Information Institute - Operating agreement (Wex legal definition).
  13. Legal Information Institute - Limited liability company (Wex).

LegalGlass provides general information for educational purposes and is not a law firm or a substitute for advice from a licensed attorney or tax professional. Laws and statutory provisions change; verify current requirements in RCW 25.15 and with the Washington Secretary of State before acting.