Texas LLC Operating Agreement: Your Complete Guide

Protect your business with a solid operating agreement. Get a free template and learn Texas-specific requirements for 2026.

By Edmond Hui · Last updated: January 2026

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State Requirements

Required By Lawno
Must Be Filedno
Special RulesNone beyond standard requirements

What to Include in Your Operating Agreement

Ownership & membership

Define each member's ownership percentage, capital contributions, and membership interests. This establishes who owns what portion of your LLC and prevents future disputes.

Management structure

Specify whether your LLC is member-managed or manager-managed, and outline the roles and authority of managers or managing members. This clarifies who makes day-to-day business decisions.

Voting rights

Establish voting procedures for major decisions, including what constitutes a quorum and what percentage is needed for approval. This ensures important business decisions are made properly.

Profit/loss allocation

Detail how profits and losses will be distributed among members, which may differ from ownership percentages. This prevents confusion during tax season and profit distributions.

Member duties

Define each member's responsibilities, time commitments, and any restrictions on competing businesses. This sets clear expectations and protects the LLC's interests.

Dissolution process

Outline the circumstances that trigger dissolution and the process for winding up business affairs. This provides a clear exit strategy and protects all members' interests.

Amendment procedures

Specify how the operating agreement can be modified, including voting requirements and documentation needs. This allows for future changes while maintaining proper governance.

Frequently Asked Questions

Next Step
Next: Understand your annual filing requirements
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Start your LLC with ZenBusinessOperating agreement included free with every LLC formation