An operating agreement is a legal document that outlines the ownership and operating procedures of a limited liability company (LLC). It sets forth the rights, responsibilities, and obligations of the LLC's members (owners) and provides guidelines for the management and decision-making processes within the company. The operating agreement typically covers key areas such as member contributions, profit distribution, voting rights, management structure, and procedures for adding or removing members. It is an important document that helps establish the internal rules and structure of an LLC.