Texas LLC Operating Agreement: What to Include
What to put in an operating agreement for your Texas LLC, and how single-member and multi-member agreements differ.
By Edmond Hui · Last updated: October 2026
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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
Sources
4 documents
Each entry below is a document recorded in our verified Texas sources, and each entry says what the document is. Some statutory text is read from an accurate mirror rather than from the state's own host, and those say so. Where we hold the citation but no stable public link, the citation is printed on its own rather than pointed at a guessed address.
- Texas statute: Texas Business Organizations Code (TBOC), Chapter 101-116 (LLC provisions)
- Texas statute: Texas Business Organizations Code (TBOC) (operating agreements)
- Texas statute: Texas Business Organizations Code (default rules)
- sos.state.tx.us/corp/index.shtmlTexas Secretary of State: business entity filings
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Form your LLC with Northwest ($39 + state fee)Includes a year of registered agent service. After year one, registered agent service is $125/yr. That enrolls you by default in annual report filing at $100 plus state fees, charged automatically to your saved payment method and cancellable any time.Not sure which service is right? Compare formation services →

Edmond Hui · Founder, MyStateLLC
Edmond Hui is a software engineer and serial entrepreneur based in New York who has founded multiple online businesses across e-commerce, media, and information publishing. Before transitioning into tech, he spent years as a commercial real estate professional closing deals totaling over 100,000 square feet, giving him firsthand experience with business formation and entity structuring. He built MyStateLLC to provide the free, state-specific LLC guidance he wished existed when forming his own companies.