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What is operating agreement?

The governing document of an LLC (analogous to a limited partnership agreement) controlling voting, distributions, transfer restrictions, reporting, sponsor authority, removal rights, and the distribution waterfall.

Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.

Related terms

From the free Real Estate Finance course by Devon Coombs, CPA, MBA.