📝 What Is an Operating Agreement?

An Operating Agreement is a foundational legal document that outlines the internal structure, rules, and ownership of your LLC (Limited Liability Company).
It defines how the business is managed, how decisions are made, how profits are distributed, and what happens if a member leaves, sells, or passes away. 

Even if you are the only member (owner) of the LLC, having this document is essential to:

• Prove separation between you and the company
• Open a U.S. bank account
• Register with payment platforms (Stripe, PayPal)
• Satisfy legal and IRS requirements
• Avoid future legal disputes

Note: For Corporations, the equivalent document is called Corporate Bylaws — also offered by INCHUB.

📄 What’s Included in INCHUB’s Legal Document Package?

• Operating Agreement (for LLCs, single or multi-member)

• Corporate Bylaws (for Corporations)

• Initial Resolutions (formal record of first decisions)

• Member or Shareholder Certificates

• Ownership Structure Chart (upon request)

• Editable formats (PDF + Word) with your company details

All documents are state-compliant, customizable, and accepted by U.S. banks, processors, and

institutions.

🎯 Who Needs These Legal Documents?

• Non-residents forming an LLC or Corporation in the U.S.

• Amazon or Shopify sellers opening business bank accounts

• SaaS startups applying for Stripe or funding

• Partnerships or co-founders managing revenue and equity

• Freelancers formalizing their operations in the U.S.

• Anyone who wants legal protection and professionalism

Why It Matters – Key Benefits

• ✅ Required by banks and fintech platforms like Mercury, Relay, Stripe

• ✅ Protects your legal liability and confirms the company is separate from the owner

• ✅ Clarifies ownership and decision-making (especially with partners)

• ✅ Supports IRS compliance and tax classification (disregarded entity, partnership, etc.)

• ✅ Used in legal disputes, funding, acquisitions, and audits

• ✅ Enhances credibility when working with U.S. clients or institutions

🛠 When Are These Documents Requested?

• During bank account applications

• While onboarding with payment processors

• When applying for business credit or loans

• During tax filing and audits by the IRS

• When signing contracts or bringing on partners

• When raising investment or equity funding

⚠ What Happens If You Don’t Have an Operating Agreement?

• U.S. banks may reject your application

• Stripe/PayPal may delay or suspend onboarding

• You have no formal proof of ownership or structure

• IRS may default your tax classification, causing compliance issues

• You risk personal liability if your LLC is challenged in court

• Internal disputes may escalate with no legal framework to fall back on

🧾 Real Example

Omar from Saudi Arabia formed a Wyoming LLC but didn’t create an Operating Agreement.

When he applied to Mercury Bank, they asked for it. He had to delay his entire business launch

until he got the right documents prepared by INCHUB.

🕒 When Should You Prepare These Documents?

• Immediately after forming your U.S. company

• Before opening a U.S. bank account

• Before applying for Stripe or PayPal

• When adding new members or investors

• Before tax filing season or reporting income

💡 Expert Tip from INCHUB

“An LLC without an Operating Agreement is like a car without a registration. It exists, but no one can trust it or legally verify it. Get protected — from day one.”