Can an LLC have an oral operating agreement?
In most states (but not all so check with your specific state), an orally agreed operating agreement is valid but the biggest problem with oral agreements is proving “what was agreed upon.” In the event there were ever an issue, it will be very expensive and difficult to prove what was agreed upon as the terms of the oral agreement since there is nothing in writing to evidence the agreement among the members. It is not recommended to ever have or depend on oral agreements between members. By having a proper written operating agreement and requiring that an LLC’s operating agreement be in writing, you reduce a lot of risk to your LLC business.
